2 August 2011

SPTS completes management buyout from SPP

European private equity backer Bridgepoint and the management of etch, deposition and thermal processing equipment maker SPP Process Technology Systems Ltd (SPTS) of Newport, Wales, UK have completed the acquisition of the latter from former parent firm Sumitomo Precision Products Co Ltd (SPP). The deal (which was announced on 27 June) closed with an enterprise value of nearly $200m. SPP will continue to have an association with SPTS through a minority equity stake in the firm, and will cooperate with SPTS to jointly serve the Japanese market.

SPTS was formed by SPP in October 2009 to merge predecessor firm Surface Technology Systems plc (STS) together with assets acquired from Aviza Technology Inc, including Newport-based single-wafer process equipment subsidiary Aviza Technology Ltd (ATL) and Aviza’s Scotts Valley-based Thermal Products business (which provides spare parts, upgrades, and new or remanufactured systems to existing customers of Watkins Johnson, SVG, and Aviza furnaces and APCVD systems). Also, last December saw completion of the transfer of ownership from SPP to SPTS of Primaxx Inc of Allentown, PA, USA, which provides residue-free micro-electro-mechanical systems (MEMS) dry etch release equipment.

After the acquisition from SPP, there will be no change in management, product strategy, customer focus or mission at SPTS, except for a minor change in name in deference to the former parent company.

Now renamed SPTS Technologies, the firm designs and manufactures capital equipment for producing electronic and micro-devices for high-growth end-markets including micro-electro-mechanical systems (MEMS), power management, advanced packaging, high-speed RF components, and high-brightness light-emitting diodes (LEDs). With more than 500 staff in manufacturing, sales and service operations across 19 countries, SPTS serves micro-device manufacturers from its main manufacturing facilities in Newport, Wales, UK and in San Jose, CA, USA. In 2010 it generated sales of $217m and earnings before interest, taxes, depreciation and amortization (EBITDA) of $58m.

The firm says that the all-equity, debt-free transaction sets a positive example for private-equity-funded management buy-outs of equipment companies, with Bridgepoint known for taking a long-term view on its investment portfolio.

“Bridgepoint’s financial backing and merger & acquisition (M&A) experience will be great assets in our growth strategy for the company,” says SPTS’ president & CEO Dr William Johnson. “Bridgepoint provides a solid foundation as we expand our operational infrastructure and we will continue our focus on best-of-breed customer satisfaction,” agrees executive VP & chief operating officer Kevin Crofton. 

See related items:

SPTS management buy-out from SPP gets backing from Bridgepoint

SPTS and Griffith University to develop SiC-on-Si technology

BluGlass and SPTS JV establishing RPCVD research and demonstration site in UK

SPTS buys Tegal’s DRIE assets

SPTS acquires HF vapor oxide etch firm Primaxx

SPTS opens San Jose facility as it celebrates anniversary

Sumitomo Precision Products completes acquisition of Aviza

Aviza agrees to sell assets to Sumitomo Precision Products

Tags: SPTS SiC-on-Si substrates BluGlass RPCVD GaN InGaN PVD ALD Etch

Visit: www.spp-pts.com

Visit: www.bridgepoint.eu