Sarowdin Partners was hired by PressCom Electronics, LLC as its exclusive financial advisor to assist in the sale of the company. Headquartered in Phoenix, Arizona, PressCom is a provider of specialized, high-mix, low-to-medium volume printed circuit board assembly (PCBA) services primarily for high-performance aerospace and defense applications. PressCom has one major customer that comprises approximately 95% of its total business.
On October 1, 2009, PressCom sold substantially all of its assets to TS3 Technology, Inc., enabling the owners to achieve full liquidity and exit their investment in the business. Based in Franklin, Tennessee, TS3 is a Southfield Capital Advisors backed contract manufacturer and provider of PCB, electromechanical, wire harness and cable assembly services with manufacturing facilities in Tennessee and Houston, Texas. Southfield Capital is a Greenwich, Connecticut based middle market private equity firm with $150 million of committed capital.
“Having spent a number of years as an executive at much larger companies, my wife and I acquired PressCom and became entrepreneurs. After spending a few years growing and operating the business, we realized we were more comfortable with the corporate world. We searched for a highly experienced investment bank that could advise us on our strategic alternatives and that would give our small business the requisite attention. Sarowdin Partners ran a competitive and thorough process that enabled the right buyer to emerge.
After signing a letter of intent with the buyer and being heavily into the due diligence and documentation phase of the deal, our major customer informed us that it was putting almost all of our business out for bid. After a process that included a number of much larger companies, PressCom was awarded approximately half of the business. Sarowdin Partners was able to renegotiate the purchase price, successfully manage the dynamics of the situation and hold the deal together despite the significant loss of revenues and an extremely difficult economic environment."*
*Client results may not be representative of the experience of others and is no guarantee of future performance or success.