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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.
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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%.
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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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