Milestone Partners has sold its Interconnect Devices Inc., a Kansas-based semiconductor test applications company, to Smiths Group plc subsidiary Smiths Interconnect for about $185 million.
The deal represents a return on its cash investment of about three times, said Geoff Veale, a principal with the private equity firm.
Milestone owned Interconnect for about three years, buying the company in 2007 for terms undisclosed.
Veale said that the Smiths subsidiary will benefit from Interconnect’s presence in China, which the company bought in 2009 along with other assets from Antares Test Technologies. Terns of that deal were not publicized either; a consortium of lenders supported Milestone in that transaction.
Houlihan Lokey worked as advisors to Interconnect Devices and Pepper Hamilton acted as the company’s counsel. Madison Capital and Hancock Capital Management provided financing for Milestone’s deal. Both were among the consortium that supported the PE firm’s prior buildout of the Kansas City-based company.
Other similar recent deals are scarce. Milestone’s Veale said the deal represents more of a one-off transaction, and that the PE firm’s portfolio houses no similar entities.
Some deals have come in the form of distressed buyers taking over similar companies. Funds affiliated with Goldman Sachs Asset Management, Tennenbaum Capital Partners and Highbridge Capital Management last year took control of GSI Group, for example, another supplier of precision technology for semiconductor systems.
Additionally, Golden Gate Capital bought Infineon Technologies AG, a German semiconductor manufacturer, last year.
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