Sun Capital Partners, though its affiliated investment group Sun European Partners, has acquired C&K Holdings, a designer and manufacturer of electromechanical switches.
C&K has a portfolio of more than 55,000 standard products and 8.5 million switch combinations that are sold to more than 20,000 customers in the industrial, automotive, aerospace, medical, consumer products, transportation and telecom industries. C&K was founded in 1928 and has more than 1,500 employees at its facilities in Newton, MA (headquarters); Dole, France; and Huizhou, China (www.ckswitches.com).
“Partnering with Sun European Partners is an important milestone for C&K,” said John Boucher, CEO of C&K. “Their investment is strong recognition of both the tremendous growth and success we’ve experienced – and agreement that our market leadership and unique capabilities have us positioned for future success. By combining our strengths with Sun’s, we gain the opportunity to expand into new markets and add even more innovative switch products to our existing portfolio.”
“We are looking forward to partnering with the management team and providing advice and guidance in their efforts to expand the company’s growth and market share,” said Marc Leder, Co-CEO of Sun Capital. “This transaction highlights Sun Capital’s global investment presence, and we’re excited about the opportunity ahead.”
Sun Capital invests in leveraged buyouts, equity, and debt in companies that can benefit from its in-house operating professionals and experience. Sun Capital has invested in and managed more than 340 companies worldwide with combined sales in excess of $45 billion since the firm’s inception in 1995. The firm has offices in Boca Raton, Los Angeles and New York, and affiliates in London, Frankfurt, Stockholm and Shenzhen (www.SunCapPart.com).
“We are excited by the high potential of this investment. The electromechanical switch market is estimated to be worth $7 billion globally and is highly fragmented,” said Jerome Nomme, Managing Director at Sun European Partners. “We believe C&K can improve its strong market position and cement its status as the manufacturer of choice in the sector. We look forward to working with C&K in their efforts to accelerate the company’s profitable growth.”
Both Sun Capital and Sun European Partners have experience in the engineered industrial products space through affiliated portfolio companies including Aclara, a supplier of smart infrastructure products (metering and monitoring equipment) to water, gas, and electric utilities; Flexitech, a designer and supplier of brake hose products to the automotive industry; and Flabeg, a Tier-2 auto supplier of glass products.
The sale process was managed by Lincoln International and Sun European Partners was advised by Kirkland & Ellis, Ernst & Young and DLA Piper. Tikehau Capital (www.tikehaucapital.com) provided the acquisition financing.
© 2017 Private Equity Professional | September 25, 2017
