Transom Capital Group has agreed to acquire publicly traded SigmaTron International at an enterprise valuation of $83 million. This transaction has been unanimously approved by SigmaTron’s board of directors.
SigmaTron (NASDAQ: SGMA) is a provider of electronic manufacturing services (EMS) to original equipment manufacturers (OEMs) for printed circuit board assemblies, electro-mechanical subassemblies, and complete box-build electronic systems used in industrial controls, consumer electronics, medical instrumentation, and automotive electronics.
Source: SigmaTron
Transom’s acquisition of SigmaTron highlights a growing trend of consolidation among mid-sized EMS companies. As labor costs increase and global supply chains become more complicated, many EMS providers with revenues between $50 million and $250 million are turning to private equity partners to gain access to capital, improve efficiency, and grow their service offerings. Industry reports from IPC and PwC show a steady rise in mergers and acquisitions in the EMS sector, especially in North America, as companies seek digital upgrades, stronger integration across their operations, and better customer diversification.
“We are excited to partner with the SigmaTron team to support the next chapter of growth,” said Russ Roenick, a co-founder and managing partner at Transom. “For decades, the company has built a strong foundation, with its electronic manufacturing expertise, deep customer relationships, and a proven track record of delivering value. We look forward to working alongside management to build on that legacy and position the business for long-term success.”
SigmaTron was founded in 1993 by Chairman and CEO Gary Fairhead and is headquartered near Chicago in Elk Grove Village, Illinois, with additional manufacturing facilities in Union City, California, and Mexico (2), China, Vietnam, and Taiwan.
TTM revenues through January 2025 were $311 million with a gross profit of $23 million (7.3%) and EBITDA of $12 million (3.8%). Based on the $83 million enterprise valuation, this equates to an EBITDA valuation multiple of 6.9x.
Transom specializes in control investments in North American companies with up to $500 million in revenue, EBITDA up to $100 million, and enterprise values up to $500 million. The firm focuses on sectors including industrial, consumer, business services, and technology.
In November 2024, Transom closed Transom Capital Fund IV LP with $675 million in capital commitments. The fund surpassed its target and initial hard cap, and more than doubled the size of the firm’s third fund.
Lincoln International is the financial advisor to SigmaTron on this transaction, which is expected to close before the end of the third quarter.
Transom Capital Group has agreed to acquire publicly traded SigmaTron International at an enterprise valuation of $83 million. This transaction has been unanimously approved by SigmaTron’s board of directors.
“We are excited to partner with the SigmaTron team to support the next chapter of growth,” said Russ Roenick, a co-founder and managing partner at Transom. “For decades, the company has built a strong foundation, with its electronic manufacturing expertise, deep customer relationships, and a proven track record of delivering value. We look forward to working alongside management to build on that legacy and position the business for long-term success.”
