Milestone Partners has agreed to sell Interconnect Devices Inc., a provider of provider of spring contact probe based technologies, to a division of Smiths Group PLC. The deal is valued at $185 million in cash, and is expected to close next month.
Milestone Partners is pleased to announce that it has entered into an agreement to sell Interconnect Devices, Inc. (“IDI”) to Smiths Interconnect, a division of Smiths Group plc for $185 million. The all-cash purchase is subject to regulatory approval and is expected to close in April.
IDI (www.idinet.com) is a leading provider of spring contact probe based technologies, including custom connectors and advanced semiconductor test sockets. IDI connectors can be found in a variety of applications within the military, aerospace, medical and industrial markets, and its spring contact probe connectors are renowned for their performance in high reliability, fail-safe applications. IDI continues to lead innovation in the semiconductor test industry today with its Antares and Synergetix Test Socket designs that were also the first semiconductor test sockets to use spring contact probe technology. IDI is headquartered in Kansas City, Kansas.
Since acquiring IDI in May 2007, Milestone, its co-investors and management have expanded and enhanced IDI’s business model. Significant value was created by augmenting senior management, improving internal operations, focusing on connector technology and completing the highly complementary acquisition of Antares that expanded IDI’s Asian presence. The planned sale transaction will generate gross returns in excess of 3x on Milestone’s largest investment in Milestone Partners II, L.P.
John Shoemaker, Managing Partner at Milestone, said, “IDI has experienced a transformative three years under our ownership. An outstanding management team executed the plan we developed jointly and have exceeded our expectations in all respects. We have also been very pleased by the board, lenders and advisors that we assembled to support the company. We are confident that Smiths will be a great steward to support the continued growth and development of the Company.”
Geoff Veale, Principal at Milestone added, “IDI’s technology leadership, combined with its state of the art manufacturing facility in China acquired through acquisition, positions IDI for exceptional future growth. As a result, there was significant strategic interest in acquiring IDI which led to a transaction with Smiths Interconnect.”
Investment banking firm Houlihan Lokey has served as exclusive financial advisor to IDI and Pepper Hamilton has acted as legal counsel. Madison Capital Funding LLC and Hancock Capital Management provided debt financing for Milestone’s acquisition and buildup of IDI.
For more information about the transaction, contact John Shoemaker or Geoff Veale at Milestone Partners.
Milestone Partners ( www.milestonepartners.com) is a private equity firm that partners with management to invest in leveraged buyouts and recapitalizations of lower middle market businesses. Milestone pursues successful niche-market leaders that provide high-margin products or services. Milestone’s transactions typically provide liquidity to shareholders of privately-owned businesses, facilitate the transition of ownership to key managers, and allow management to capitalize on growth opportunities, while maintaining the legacy of the founders. Milestone is currently making follow-on and add-on investments through Milestone Partners II, L.P., a $120 million fund, and is making new platform investments through Milestone Partners III, L.P., a $240 million fund.