H.I.G. Capital News
Contact:Rick Rosen (305) 379-2322
Bill Wentworth (603) 595-290
H.I.G. Capital Announces Acquisition of Source Electronics Corporation
Miami, FL - March 21, 2001 - H.I.G. Capital, a leading private equity firm, announced today that it has acquired a majority stake in Source Electronics Corporation.
Source Electronics is the largest independent semiconductor programmer in North America, operating facilities in Hollis, NH, Fremont, CA and Guadalajara, Mexico. The Company provides customized semiconductor programming, testing and materials management services to OEMs and contract manufacturers. With sales in excess of $200 million, Source serves an extensive list of blue chip customers in the telecommunications, networking, data storage, automotive, personal computer and electronics industries. Source's outstanding reputation for customer service, quality and rapid turnaround times have driven the company's success to date and should enable it to capitalize on outsourcing trends and the proliferation of programmable chips.
In announcing the transaction, CEO and Chairman Bill Wentworth said, "We are extremely excited about our partnership with H.I.G. Capital. With H.I.G.'s added resources, Source will continue serving its customers with the highest regard for service, while expanding its capabilities and geographic reach."
"Source Electronics is a terrific business with a keen focus on customer service and quality," said John Black, a Managing Director with H.I.G. "The Company has an outstanding track record and a proven ability to attract new customers and identify significant growth opportunities. With H.I.G.'s financial and operating support, I believe that Source will become a key player in the semiconductor supply chain."
About H.I.G. Capital
H.I.G. Capital (http://www.higcapital.com) is a leading private equity and venture capital investment firm with more than $1 billion of equity capital under management. Formed in 1993, H.I.G. is located in Miami, Florida and specializes in middle market acquisitions, consolidations, recapitalizations, management-led buyouts and venture capital investments. H.I.G. has made investments in more than 50 successful companies with aggregate revenues of more than $4.0 billion, representing a broad range of industries including aerospace, business services, manufacturing, telecommunications, automotive, electronics and IT.
About the Transaction
The deal closed March 21, 2001. Post-close, 100% of the stock will be owned by H.I.G. and management. H.I.G. has committed additional equity capital from its funds for growth initiatives and add-on acquisitions. Financing for the transaction was provided by Ableco Finance, LLC in New York.