One Equity Partners is buying a minority stake, 28.8 percent, of Sanken North America via a private placement. The deal is valued at $291 million. Sanken Electric Company Ltd, the parent, will receive the $291 million in proceeds through a special dividend. Sanken North America, of Worcester, Massachusetts, owns two semiconductor businesses, Allegro MicroSystems LLC and Polar Semiconductor LLC. Sanken Electric supplies analog power semiconductor products.
WORCESTER, Mass. – July 18, 2017 – Sanken Electric Company, Ltd., (Sanken) announced today that One Equity Partners (OEP), a middle market private equity firm with deep technology expertise, will make a minority investment in Sanken North America (SKNA). SKNA will conduct a private placement of 28.8% of newly issued shares to be purchased by One Equity Partners for $291 million. Proceeds from the sale of shares will be returned to Sanken in the form of a special dividend.
SKNA, a wholly-owned subsidiary of Sanken, is the owner of two semiconductor businesses, Allegro MicroSystems, LLC (Allegro) and Polar Semiconductor LLC (Polar). Allegro is a leader in developing high-performance power and sensor semiconductors that serve high-growth applications within the automotive, industrial and consumer markets, while Polar Semiconductor is a manufacturer of silicon wafers. Headquartered in Worcester, Mass., SKNA has a significant presence in Manchester, N.H., and operates manufacturing facilities in Bloomington, MN, the Philippines and Thailand.
“Sanken Electric Company has made the strategic decision to realize the value created in SKNA to provide funds for Sanken’s restructuring and to provide a path for SKNA to access future investment sources to support its growth and expansion objectives. OEP is experienced in the semiconductor market and provides an excellent opportunity to benefit the Sanken Group,” said Yoshihiro Suzuki, Chairman of the Board, Sanken North America and member of the Sanken Board of Directors.
“SKNA has been undergoing a transformation over the past 12 months with a focus on growth and improved competitiveness. With OEP’s management and financial expertise in building market-leading technology businesses, we will continue to grow the company while pursuing new opportunities focused on advanced technology, innovation and product line expansion,” said Ravi Vig, President and Chief Executive Officer of SKNA and Allegro MicroSystems and a member of the SKNA Board of Directors.
“We are excited to partner with Sanken and the SKNA management team to help drive continued growth at Allegro and Polar. This transaction is the result of a very comprehensive and strategic dialogue between all parties and the alignment on the direction of the company is exceptional,”
said Chip Schorr, Senior Managing Director, One Equity Partners. Schorr will join SKNA’s Board of Directors following completion of the transaction.
The private placement transaction is subject to regulatory approvals. All documents are expected to be finalized in the third quarter, with regulatory approvals expected shortly thereafter.
About Sanken Electric Company, Ltd.
Sanken Electric Co., Ltd., a leading global supplier of analog power semiconductor products, designs and manufactures a wide range of power management integrated circuits, motor control integrated circuits, LED lighting integrated circuits as well as high quality automotive semiconductor devices and discrete components. For more information, please visit www.sanken-ele.co.jp/en/.
About Sanken North America (SKNA)
SKNA, a wholly-owned subsidiary of Sanken Electric Co., Ltd., is the owner of Polar Semiconductor, LLC, (Polar) a wafer fabrication facility specializing in Bipolar CMOS DMOS (BCD) processes located in Bloomington, Minnesota (USA) and Allegro MicroSystems, LLC, (Allegro) a leader in developing high-performance power and sensing semiconductors. Allegro’s innovative solutions serve high-growth applications within the automotive market, with additional focus on office automation, industrial and consumer/communications solutions. Allegro is headquartered in Worcester, Massachusetts (USA) with design, applications, and sales support centers located worldwide. For more information, please visit www.allegromicro.com.
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 extensive track record generating long-term value for its partners. Since 2001, the firm has completed more than 140 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.