One Equity Partners acquires Spartronics
Middle market private equity firm One Equity Partners (OEP) has completed the acquisition of Spartronics from Sparton Corporation (Sparton). Financial terms of the transaction have not been 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 US 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,” says 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,” says 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,” says 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.