Cal Sensors, Inc.

Santa Rosa, California

has been acquired by

Illinois Tool Works

Glenview, Illinois

Capital Alliance Corporation initiated
this transaction and assisted in its closing.

Cal Sensors, Inc.

Cal Sensors, Inc. is the world’s leading semiconductor manufacturer of lead salt-based commercial infrared detectors, which are used in a variety of commercial applications. The company sold its business to a strategic acquirer, Illinois Tool Works (ITW), a company with whom Capital Alliance had negotiated previous acquisitions for sell-side clients. Illinois Tool Works is a publicly-traded, $14 billion revenue manufacturer of engineering products. ??

Cal Sensors’ success reflected the contributions of its many small shareholders who had held their stock for twenty years and were now seeking liquidity. Also proposing a sale was the company’s chairman, who wished to phase out of his role managing business operations. When Cal Sensors needed a partner to promote its company, it chose Capital Alliance.

Capital Alliance’s extensive semiconductor experience became critically important to the promotional strategy for the narrow and complex technologies of Cal Sensors. Capital Alliance generated four offers from technically and financially qualified buyers, using outreach materials tailored to the profile of the candidate acquirers. ITW offered the most favorable terms, improved by Capital Alliance through positive but firm negotiations.

Capital Alliance negotiated an all-cash closing. The final sales price exceeded Cal Sensors’ original expectations.