SMTC Corp. acquired by H.I.G. Capital
SMTC Corporation, a Toronto-based electronics manufacturing services (EMS) provider, has entered into a definitive merger agreement with an affiliate of H.I.G. Capital, a leading global alternative investment firm with $42-billion of equity capital under management.
Under the terms of the merger agreement, an affiliate of H.I.G. will acquire all outstanding shares of SMTC Corp. common stock for $6.044 per share in cash, which represents a premium of approximately 22% over SMTC’s closing share price on December 31, 2020 and 66% over the share price 60 days ago. The SMTC Board of Directors has unanimously approved the merger agreement and recommends that the company’s stockholders adopt the merger agreement.
Leader among mid-size providers
“Over the past three years, the team at SMTC has done an excellent job of transforming the Company into a global leader among mid-size providers of end-to-end EMS services by offering superior supply chain management, and proactive services and solutions to an expanding base of customers,” said Ed Smith, president and CEO of SMTC. “Partnering with H.I.G. will enable us to accelerate our growth through continued investment in our customers, capabilities, and footprint.”
The transaction, which is subject to the receipt of approval from SMTC’s stockholders, antitrust clearance, and other customary closing conditions, is expected to close by the second quarter of 2021.
SMTC Corp. was founded in 1985 and acquired MC Assembly Holdings, Inc. in November 2018. SMTC has more than 50 manufacturing and assembly lines in the United States and Mexico, which manage low-to-medium volume, high-mix, end-to-end global electronics manufacturing services (EMS) designs. With local support and expanded manufacturing capabilities globally, SMTC serves such sectors as avionics, aerospace and defense, industrial IoT, power and clean technology, medical and safety, retail and payment systems, semiconductors, telecom, networking and communications and test and measurement industries.
As a mid-size provider of end-to-end EMS services, SMTC provides printed circuit board assembly production, systems integration and comprehensive testing services, enclosure fabrication, as well as product design, and sustaining engineering and supply chain management services.