The Selling Company: Advantek is a leading producer of carrier tape for the semiconductor industry. Its explosive growth in sales and profitability results from proprietary processes and achieving superior tolerances. With worldwide sales, the company has facilities in Singapore and Germany, with its manufacturing operations headquartered in Minnesota.
Why the company was sold: The major shareholder wanted to obtain cash for his equity in the business and he wanted to begin planning for his retirement. He wanted to stay with the company for some time, while having the ability to spend more time in other areas of interest.
Capital Alliance’s Performance: Five acquirers were introduced by Capital Alliance. All five of them visited the company and made offers. The winning offer was from the only acquirer from the five that was not in the electronics industry. This acquirer had worked with Capital Alliance for many years and wanted to decrease their dependency on the auto industry. This acquirer substantially outbid the four other acquirers, resulting in an all cash transaction.
Terms of the Transaction: The successful acquirer paid over three times the seller’s original price expectation in cash at the closing and a cash payment one year later.
The Acquiring Company: A closely-held corporation formed in 1946, Siegel-Robert’s core business is primarily operating as a major supplier to the OEM market. Recent acquisitions in other industries have significantly broadened its base of operations.
