HIG Capital acquires SMTC Corporation

HIG Capital (HIG), a global alternative investment firm with over USD43 billion of equity capital under management, has completed the acquisition of SMTC Corporation (SMTC). 

Prior to the transaction, SMTC was publicly listed on NASDAQ.

Founded in 1985, SMTC Corporation is a global Electronics Manufacturing Services (“EMS”) provider focused on partnering with leading original equipment manufacturers and emerging technology companies to provide the full range of end-to-end EMS services, from prototyping and design, to manufacturing and logistics. SMTC’s diversified operating footprint across the United States and Mexico supports customers across multiple industries, including aerospace and defence, industrial IoT, power, medical, semiconductors, telecom, communications, and test and measurement industries.

Edward Smith, President and Chief Executive Officer of SMTC, says: “Over the past three years, SMTC has become a global leader among mid-size providers of end-to-end EMS by offering superior supply chain management and proactive services and solutions to an expanding base of customers. Partnering with HIG will enable us to accelerate our growth through continued investment in our customers, capabilities, and footprint.

“This investment provides SMTC Corporation with a long-term partner with an extensive track record of supporting its portfolio companies with operational expertise, technology, financial management and M&A experience. Together, we believe we can capitalise on strategic growth opportunities, while continuing to meet the needs of our customers by delivering high-quality, innovative solutions and services.”

Phillip Wood-Smith, Managing Director of HIG, says: “We are pleased to partner with Eddie Smith and his team. They have done an outstanding job over the past three years serving some of the most attractive EMS end markets. With its industry-leading solutions and strong customer relationships, we believe there is significant opportunity to invest in SMTC’s customers and capabilities to further expand the Company’s leadership position. We look forward to partnering with SMTC’s talented management team and employees to serve its customers with best-in-class solutions, build upon its existing capability excellence, and help SMTC achieve its full potential.”

Guggenheim Securities LLC acted as financial advisor and Ropes & Gray LLP acted as legal counsel to HIG on the transaction. Lincoln International LLC acted as financial advisor and Perkins Coie LLP acted as legal counsel to the Company.