IGP Carves a Piece Of Philips Electronics –

Industrial Growth Partners (IGP) last month sponsored a management buyout of a division of Philips Electronics North America Corp. for approximately $100 million, according to Pat Forster, a partner at IGP.

The management of the spin-off, to be named Airpax Corp., will own more than 5% of the company, Mr. Forster said.

IGP committed approximately $30 million in equity to the transaction, and Wells Fargo Bank provided the balance in senior debt. The bank is a limited partner in IGP’s fund.

Airpax has three subsidiaries, which make magnetic circuit breakers, thermal sensing products and circuit packaging products. The company has operations in Maryland and Mexico, as well as a joint venture in Japan.

IGP will use Airpax as a platform and has no plans to spin off any of the subsidiaries, Mr. Forster said. “This was a traditional, 80s-style LBO,” Mr. Forster said.

Based in San Francisco, IGP currently is investing its second fund, which closed early last year on $150 million.

In addition to Wells Fargo, Mr. Forster said his firm’s fund had a mix of limited partners, including state pensions and a university endowment. L.P.s sometimes are given the opportunity to co-invest in deals, he said.