Sun Capital Partners has agreed to sell C&K, a manufacturer of electromechanical switches, to publicly traded Littelfuse at an enterprise valuation of $540 million.
C&K’s electromechanical switches and interface technologies are used in automotive, industrial, medical, consumer, aerospace, and datacom applications. The company, with annualized sales of over $200 million, has more than 55,000 standard products that can be combined into more than 8.5 million switch combinations.C&K’s switches are available in many formats including tactile, pushbutton, key switch, rotary, toggle, and thumbwheel. The company, led by CEO Lars Brickenkamp, was founded in 1928 and is headquartered in Waltham, Massachusetts, with additional operations in France, Germany, India, Vietnam, and China.
Sun Capital acquired C&K in September 2017 and during its ownership term, C&K nearly doubled EBITDA and improved EBITDA margins by over 400 basis points.
“Under Sun Capital’s stewardship we have achieved remarkable success and are proud that C&K is now a clear industry leader in the design and manufacturing of micro-miniature tactile switches,” said Mr. Brickenkamp. “Their operational and industry expertise, paired with our unerring dedication to complete customer satisfaction, enabled us to accelerate C&K’s growth. We are confident that C&K will continue to enjoy success under the ownership of Littelfuse.”
In April 2018, C&K completed the add-on acquisition of Vuillermoz, a France-based maker of micro-mechanical components with tolerances +/- 1 micron (one millionth of a meter). An example of the company’s precision capabilities include the ability to drill a 3 micron hole into a 100 micron wire to hold a camera for heart diagnostics. In August 2021, C&K added on again with the buy of EIS Electronics, a France-based producer of cable and connector assemblies used in aerospace and defense applications.
“We were very pleased to collaborate with C&K’s management team to accelerate growth across the organization, implement key operational improvements and position the business for future success,” said Marc Leder, Co-CEO of Sun Capital. “We were also able to draw on our strong sector expertise to help C&K management capitalize on M&A opportunities and establish a culture of continuous improvement that will serve the company well as it moves forward in partnership with Littelfuse.”
Littelfuse (NASDAQ: LFUS) is a manufacturer of circuit protection products, electronic switches and automotive sensors. Chicago-headquartered Littelfuse, with annual revenues of just more than $2 billion, was founded in 1927 and has sales, distribution, manufacturing and engineering facilities in the Americas, Europe and Asia.
Sun Capital invests in leveraged buyouts, equity, and debt in companies that can benefit from its in-house operating professionals and experience. The firm has invested in and managed more than 465 companies worldwide with combined sales in excess of $50 billion since its inception in 1995. Sun Capital has offices in Boca Raton, Los Angeles and New York, and an affiliate office in London.
© 2022 Private Equity Professional | April 14, 2022