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B. Riley FBR Supports SMTC’s Acquisition of MC Assembly Holdings

November 15, 2018, 07:30 AM
Filed Under: Manufacturing

B. Riley FBR, Inc., a leading full service investment bank and wholly-owned subsidiary of B. Riley Financial, Inc., announced it served as the exclusive financial advisor and debt placement agent in support of SMTC Corporation’s announced acquisition of MC Assembly Holdings, Inc. from Cyprium Partners.

The transaction represents a purchase price of approximately $65 million at closing (subject to certain adjustments) and was financed by cash from SMTC Corporation’s balance sheet and a new debt financing package on which B. Riley FBR served as placement agent. SMTC Corporation secured a $45 million asset-based revolving line facility from PNC Bank and a $67 million senior secured loan facility from TCW Direct Lending LLC.

SMTC Corporation is a mid-size provider of end-to-end electronics manufacturing services (EMS), including printed circuit board assemblies, systems integration and comprehensive testing services, enclosure fabrication, product design and supply chain management services. MC Assembly provides turnkey solutions for OEMs, including assembly of medium volume, medium mix printed circuit board assemblies and box builds. Through this transaction, the combined company becomes a leading, diversified EMS provider with enhanced scale, expanded market presence and new growth opportunities.

“B. Riley FBR’s extensive domain expertise within the EMS industry combined with their broad network and deep relationships with lenders enabled us to execute what we believe will be a truly transformational transaction for SMTC Corporation,” said Ed Smith, President and CEO of SMTC Corporation. “We’re very pleased to have partnered with B. Riley FBR on this transaction.”

“The acquisition of MC Assembly by SMTC Corporation is a significant event in the North American-centric area of the EMS sector which is currently going through a period of rapid growth and evolution,” said Ryan Bernath, Senior Managing Director at B. Riley FBR. “This transaction creates a preeminent, at-scale provider in the attractive low-to-medium volume, high mix EMS industry with a highly coveted geographic manufacturing footprint in the United States and Mexico. We were delighted to work with Ed and his team in advising on the acquisition and securing the supporting debt financing, and we look forward to working with the company in the future.”

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