Sanken Electric Company, Ltd. 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, Inc., (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 both the Philippines and Thailand.
"Sanken Electric Company has made the strategic decision to realize the value created in SKNA to provide funds for its restructuring and to provide a path for SKNA to access investment for growth and expansion. 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, Inc. 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, LLC 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.