Eden Prairie, Minnesota
has been acquired by
St. Louis, Missouri
Capital Alliance Corporation initiated
this transaction and assisted in its closing.
Advantek is a leading producer of carrier tape for the semiconductor industry. The company sold its business to long-time Capital Alliance client Siegel-Robert, a major supplier to the automotive OEM market.
Advantek held proprietary manufacturing processes that enabled the company to achieve superior tolerances on its chip carrier tape, a significant competitive advantage. With operations on three continents, numerous patents, and worldwide sales to most of the largest semiconductor manufacturers, the company enjoyed explosive sales growth during the years leading up to its acquisition. When the company’s major shareholder wished to obtain cash for his equity in the business, Advantek requested the assistance of Capital Alliance.??
Capital Alliance developed company briefings and confidential offer memoranda, and through extensive corporate presentations and a strong screening process, identified a targeted base of well-matched potential acquirers. The efforts yielded five qualified investors, of whom each was a strategic fit for Advantek. Each investor made an initial offer for the company. Four candidates produced second-round offers, substantially increasing their bids. Capital Alliance applied negotiating pressure through a silent auction process to boost the prices offered. Additionally, Capital Alliance, through its long relationship with Siegel-Robert, had become aware of the company’s desire to increase its exposure in the automotive electronics business, where Advantek had a strong roadmap. With an understanding of the buyer’s motivation, Capital Alliance succeeded in negotiating a bid from Siegel-Robert substantially larger than the competing second-round bids.
Capital Alliance secured terms of cash at closing, with a subsequent cash payment one year later. Seigel-Robert paid over three times the seller’s original price expectation.