Lorom Industrial, a portfolio company of Cornell Capital and a specialized cable manufacturer, has acquired Segue Manufacturing Services.
Segue is a contract manufacturer specializing in complex electromechanical integration, cable, and harness assemblies used in the medical, industrial automation, capital equipment, and device OEM end markets. Segue is headquartered near Boston in Billerica, Massachusetts, and has more than 500 employees with manufacturing operations in Massachusetts, China, and Mexico.
Lorom is a provider of specialized cable manufacturing and assembly services. In addition to its cable capabilities, the company provides plastic injection, stamping, die-casting, printed circuit board assembly and tooling processes.
Lorum’s customers include many Fortune 500 automotive, industrial, media, technology, and medical companies. Taiwan-headquartered Lorom was founded in 1988 and has more than 4,000 employees across four factories in China (2), Taiwan, and India. Cornell Capital acquired Lorom in October 2019.
The acquisition of Segue combines its electromechanical and cable assembly capabilities with Lorom’s operating capabilities in wire and cable manufacturing,
“This strategic transaction provides Segue with multiple growth opportunities, including additional manufacturing capacities on an international scale and the ability to leverage additional engineering support,” said Brian Desmarais, the chief executive officer of Segue. “With Lorom’s specialized expertise in wire harness, interconnect solutions, and cable manufacturing, Segue’s customers will benefit from our enhanced vertical integration capabilities. On the heels of our 30th anniversary, we couldn’t be more excited about the future of Segue.”
“We are pleased to welcome Segue to the Lorom family and look forward to supporting its future growth,” said Joyce Hsu, the chairperson of Lorom and the chair of Asia at Cornell. “Segue’s expertise in complex electromechanical and cable assembly is the ideal complement to our proficiency in wire and cable manufacturing. Lorom will help us deliver an enhanced customer experience and broader reach with its leading position and an exceptional reputation for quality within the North American marketplace.”
“As demand for electrification around the world grows, Lorom and Segue represent two complementary businesses that are poised to capitalize on the increasing shift toward high-quality, outsourced manufacturing,” said Allen Chu, a partner and head of Asia at Cornell. “We are confident that together, the combined global manufacturing bases will provide all customers with an enhanced and expanded service offering, and we look forward to working with the Lorom and Segue teams to drive strategic growth and strengthen the company’s market position in key markets across the globe.”
New York and Hong Kong-headquartered Cornell Capital was founded in 2013 by Henry Cornell, the former vice-chairman of Goldman Sachs’ merchant banking division, to invest in companies in the consumer, energy, financial, and industrial sectors. In March 2022, the firm held an above-target closing of Cornell Capital Partners II LP with $1.7 billion in capital commitments. Cornell’s inaugural fund closed in June 2018 with $1.3 billion in capital commitments.
© 2023 Private Equity Professional | February 16, 2023
