OEP’s Spartronics Acquires Inovar
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OEP’s Spartronics Acquires Inovar

Latest add-on expands electronics manufacturing business and OEM customer base

Spartronics designs, and manufactures electronic and electromechanical devices including printed circuit card assemblies and cable/wire harnesses

SOURCE: Spartronics

Spartronics, a portfolio company of One Equity Partners (OEP), has acquired Inovar, a contract manufacturer of electronic components.

Inovar is a Tier 3 provider of electronic manufacturing services (EMS) including product design, prototyping, assembly, testing, warranty/non-warranty repair, refurbishment, and product disposal. The company, founded in 1998 and management-owned, operates two facilities in North Logan, Utah (120,000 sq. ft.) and Tecate, Mexico (60,000 sq. ft.).

Spartronics was formed in July 2020 by OEP to acquire Manufacturing & Design Services, the contract manufacturing unit of Sparton Corporation, a portfolio company of Cerberus Capital.

Spartronics engineers, designs, and manufactures electronic and electromechanical devices, including printed circuit card assemblies and cable/wire harnesses. The company specializes in low-to-medium volume manufacturing of products used in military, aerospace, industrial, and medical sectors. Williamsport, Pennsylvania-headquartered Spartronics, led by CEO Paul Fraipont with 1,700 employees, operates 6 plants in the United States, a plant in Vietnam, and has over $500 million in annual revenue.

“Inovar is the Rocky Mountain leader for full-service Tier 3 EMS,” said Mr. Fraipont. “It focuses on the same core market verticals as Spartronics, which has a very strong position in aerospace and defense. Acquiring Inovar sharpens our focus on those core market verticals. Inovar’s attractive near-shore footprint in Tecate, Mexico, complements our unique and growing off-shore capability in Vietnam.”

“We are thrilled to accelerate the growth of Spartronics by identifying and completing the transformational acquisition of Inovar, a deal that reflects OEP’s strategy of transforming middle-market businesses into market leaders,” said Chip Schorr, a senior managing director at OEP.

The buy of Inovar is the second add-on completed by Spartronics, and follows the December 2020 acquisition of Williamsport, Pennsylvania-based Primus Technologies, a provider of engineering, manufacturing and testing services of circuit card assemblies and box builds for aerospace, defense, medical and industrial OEMs.

OEP is a middle-market private equity firm focused on the industrial, healthcare, and technology sectors in North America and Europe. OEP spun out of JP Morgan in 2015 and has closed more than 300 transactions worldwide since its founding in 2001. The firm has offices in New York, Chicago, Frankfurt and Amsterdam.

© 2021 Private Equity Professional | September 3, 2021

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