Transom Capital completes acquisition of SigmaTron International

LOS ANGELES/ELK GROVE VILLAGE - Private equity firm Transom Capital Group has completed its previously announced acquisition of electronic manufacturing services provider SigmaTron International, the companies announced Monday. The deal values SigmaTron at $18.42 million, according to InvestingPro data, which indicates the company was trading below its Fair Value at the time of acquisition.

Following the transaction, SigmaTron’s common stock has ceased trading and is no longer publicly listed. Transom’s tender offer to acquire all outstanding shares at $3.02 per share in cash expired on July 24, with approximately 4.4 million shares (71.9% of outstanding shares) validly tendered. The acquisition comes after SigmaTron posted a remarkable 79% return over the past six months, despite challenging market conditions.

SigmaTron, headquartered in Illinois, operates seven global manufacturing facilities, including five in North America, with additional locations in China, Vietnam, and Mexico. The company provides electronic manufacturing services including printed circuit board assemblies and electro-mechanical subassemblies, generating annual revenues of $311.7 million. InvestingPro analysis reveals the company has been operating with slim gross margins of 7.4%, suggesting potential operational improvement opportunities under new ownership.

"With Transom’s support and operational expertise, we are well positioned to accelerate our long-term strategic objectives," said Gary Fairhead, Chairman and CEO of SigmaTron, in a statement from the press release.

Conor Davenport, Managing Director at Transom, stated the firm sees "significant opportunities to enhance SigmaTron’s sales, operations, and profitability, and to drive further growth through strategic M&A."

Kirkland & Ellis LLP served as legal advisor to Transom, while Lincoln International acted as exclusive financial advisor to SigmaTron. Greenberg Traurig, LLP and Howard & Howard Attorneys PLLC provided legal counsel to SigmaTron.

Los Angeles-based Transom Capital focuses on middle-market private equity investments with an operational approach to driving company transformations.

In other recent news, SigmaTron International has announced a significant merger agreement with Transom Capital Group. The transaction involves Transom Capital initiating a tender offer to acquire all outstanding shares of SigmaTron’s common stock for $3.02 per share in cash, valuing the company at approximately $83 million. This offer represents a substantial premium of 134% over SigmaTron’s closing market price as of May 20, 2025. Upon completion, SigmaTron will become a wholly owned subsidiary of Transom and will be delisted from NASDAQ. Additionally, SigmaTron disclosed the resignation of Rajesh B. Upadhyaya, Executive Vice President, West Coast Operations, effective April 30, 2025. The company confirmed that his departure was not due to disagreements with its operations or policies. A separation agreement was reached, including a cash payment of $125,000 over 12 months and other benefits. These developments reflect significant changes in SigmaTron’s corporate structure and management.

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