EFTC, now Suntron (NASDAQ:SUNN), is a leading electronics manufacturing services company providing high mix solutions for the aerospace, industrial controls and instrumentation, medical, semiconductor, networking and telecommunications industries.
EFTC’s two largest customers, Honeywell and Allied Signal, had merged producing a 70% customer concentration and EFTC had been experiencing heavy losses. The Company required additional liquidity to support a recently awarded 10-year, long-term supply agreement that was expected to increase revenues by 50%.
M&A Capital’s professionals pursued a parallel process, including non-dilutive and minority equity capital options to ensure a well-informed decision by EFTC’s board of directors. After contemplating several options, EFTC entered into an agreement with a private equity firm which closed in two parts: (i) short-term growth capital with shareholder dilution of less than 20%, and (ii) a leveraged recapitalization that conformed with SEC proxy solicitation requirements.
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