One Equity Partners has acquired Watertown, South Dakota-based Spartronics, a maker of assembled PCBs. The seller was Sparton Corporation. No financial terms were disclosed.
One Equity Partners (“OEP”), a middle market private equity firm, today announced that it has completed the acquisition of Spartronics (“Spartronics” or “the Company”), from Sparton Corporation (“Sparton”) as outlined in the attached and enclosed release. Financial terms of the transaction were not disclosed.
Headquartered in Watertown, South Dakota, Spartronics, formerly Sparton’s Manufacturing & Design Services (MDS) business, provides engineering, contract design, manufacturing and aftermarket repair of printed circuit card assemblies, sub-assemblies, full product assemblies, and cable/wire harnesses, which are used by original equipment manufacturers (OEMs) across the aerospace, medical, and industrial markets. The Company operates nine facilities in the U.S. and one in Vietnam.
“Spartronics is poised to take advantage of new opportunities as major OEMs are increasingly demanding advanced electronics manufacturing services and outsourced solutions in North America and globally,” said Chip Schorr, Senior Managing Director at OEP. “Our investment in Spartronics reflects OEP’s historic focus on acquiring high growth businesses through corporate carve-outs that strengthen growth prospects while ensuring continuity for customers, suppliers and employees.”
OEP’s partnership with the Spartronics management team, led by President and CEO Paul Fraipont, will establish the Company as an independent, standalone business. “We look forward to working together with our new partner OEP to take Spartronics to the next level of growth and add value to our blue-chip OEM customers,” said Fraipont.
OEP has pursued investment themes in the electronics manufacturing services (EMS) sector since 2017, where the firm can acquire new platform companies and execute its transformational acquisition strategy to accelerate growth. It identified Spartronics over the last two years as a strong platform for building a leading outsourced EMS business with the additional resources and expertise OEP brings to its investments.
“We believe that Spartronics’ footprint and deep engineering expertise provides the ideal base on which to build a leading global EMS provider through organic initiatives, inorganic growth and new strategic partnerships,” said Konstantin Ryzhkov, Managing Director at OEP.
OEP has a strong track record of acquiring market-leading businesses through corporate carve-outs, including most recently, ORS Medco, a wholesaler of maintenance and repair focused non-discretionary and consumable industrial and automotive aftermarket products; and, Anvil International, a leading North American manufacturer of high-quality pipe fittings and system components, among others.
About One Equity Partners
OEP is a middle market private equity firm focused on the industrial, healthcare, and technology sectors in North America and Europe. The firm builds market-leading companies by identifying and executing transformative business combinations. OEP is a trusted partner with a differentiated investment process, a broad and senior team, and an established track record generating long-term value for its partners. Since 2001, the firm has completed more than 180 transactions worldwide. OEP, founded in 2001, spun out of JP Morgan in 2015. The firm has offices in New York, Chicago, and Frankfurt. For more information, please visit www.oneequity.com.