Radnor, PA, November 15, 2011 – Milestone Partners is pleased to announce that on October 24, 2011 it completed the acquisition of two connector businesses (Pancon and Ark-Les Connectors) and a capacitor business (Paktron) from Illinois Tool Works Inc. The three businesses will be combined to form a new Company known as Pancon Corporation (“Pancon” or “Company”), which will be headquartered in Stoughton, MA. Milestone acquired the net assets of the businesses in the United States and the shares of related operations in Europe.
Pancon is a leading global manufacturer of connectors and capacitors. The connector business produces a variety of standard and custom connectors and is dedicated to developing innovative connectivity solutions by partnering with key customers and distributors. The capacitor business is a technological leader in the field of multilayer polymer capacitors primarily serving power conversion applications in industries such as telecommunications/datacom, military infrastructure, automotive, medical and high-end industrial.
After the successful sale of Interconnect Devices (IDI) in 2010, Milestone has been looking for a new investment platform in the connector industry. Milestone is partnering with former IDI CEO Mike Kirkman who becomes the new CEO of Pancon. Mr. Kirkman noted “I am excited to partner again with Milestone in our second investment together in the connector industry. Milestone is the right kind of private equity firm that is committed to the success and growth of its companies.”
Geoff Veale, Principal at Milestone, stated “Pancon will have significant opportunities for growth as the combination of these three businesses into one entity will give its customers access to greater resources. The Company is well positioned to serve its customers given its strong product offering, global manufacturing operations and experienced management team.” In addition, Mr. Veale added “Pancon will be set up as a platform company where Milestone will aggressively look for add-on opportunities to expand Pancon’s product offering and geographic footprint.”
The law firm Drinker Biddle & Reath advised Milestone. The Pancon management team co-invested equity alongside Milestone.
Milestone Partners (www.milestonepartners.com) is a private equity firm that partners with management to invest in leveraged buyouts and recapitalizations of lower middle market businesses. Milestone pursues successful niche-market leaders that provide high-margin products or services. Milestone’s transactions typically provide liquidity to shareholders of privately-owned businesses, facilitate the transition of ownership to key managers, and allow management to capitalize on growth opportunities, while maintaining the legacy of the founders.