Somacis Acquisition: Key Details, Impact, and What Comes Next

Bain Capital's acquisition of Somacis marks a significant move in the PCB manufacturing industry. This strategic partnership aims to leverage Somacis' expertise in high-specification printed circuit boards to accelerate growth in key markets such as aerospace, defense, and medtech. The collaboration is expected to enhance Somacis' global reach and market position, benefiting the broader industry.

What Is Somacis?

Founded around 1970, Somacis specializes in high-tech printed circuit boards (PCBs), including HDI, rigid, rigid-flex, flex, and RF/Microwave MLBs. The company differentiates itself with a comprehensive product portfolio, reduced lead times, and a global presence with facilities in Italy, the USA, and China. Somacis offers advanced technology, high reliability, and extensive global services, including co-design and co-engineering, ensuring quality and innovation throughout the product lifecycle.

Who Acquired Somacis?

Bain Capital is a global private investment firm known for its deep sector expertise and diverse investment strategies. The company operates in various sectors, including private equity, venture capital, credit, real estate, and more. Key services include transforming businesses through private equity, accelerating growth with venture capital, and structuring bespoke capital solutions. With a strong presence across multiple regions, Bain Capital is a significant player in the investment landscape, recognized for creating long-term value and impact.

When Was Somacis Acquired?

Bain Capital announced its acquisition of Somacis on August 7, 2024. This move comes at a time when the demand for high-specification printed circuit boards is surging, particularly in sectors like aerospace, defense, and medtech. The acquisition aligns with industry trends of strategic growth through mergers and acquisitions, aiming to bolster Somacis' market position and global reach. The timing also reflects Bain Capital's broader strategy to enhance its portfolio with high-growth potential companies.

Why Was Somacis Acquired?

• Market Expansion: Bain Capital plans to accelerate Somacis' growth agenda across various high-performance end-markets such as Aerospace & Defence, MedTech, and Industrial Technology Applications. The acquisition aims to expand Somacis' global reach and fulfill long-term ambitions through a mix of organic and inorganic strategic growth initiatives.
• Technology Integration: Somacis specializes in high-technology PCB solutions, built on strong engineering know-how and developed with client proximity. The company operates across the full value chain, offering R&D prototyping, ramp-up, and end-to-end production. This technological capability is a key factor in the acquisition.
• Competitive Advantage: Somacis' strength in the market, particularly in high-mix, low-volume, high-specification, and mission-critical PCBs, positions it well to benefit from sustainable long-term re-shoring tailwinds. Bain Capital's backing, combined with its expertise in international development and operational capabilities, is expected to further enhance Somacis' competitive advantage in the global market.

Acquisition Terms

• Acquisition Price: The acquisition price is not publicly disclosed.
• Payment Method: The transaction involved the issuance of €550 million in senior secured floating rate notes due 2031. €350 million of the proceeds were used for the acquisition, and an additional €200 million was placed into escrow pending the completion of an acquisition by SO.MA.CI.S.
• Key Conditions or Agreements:
  • Bain Capital will acquire a controlling stake in Somacis.
  • Chequers Capital will reinvest into the company alongside the management team.
  • The transaction is subject to regulatory approval.
  • Financial advisors for Bain Capital were Morgan Stanley and Bank of America, while Jefferies advised Chequers and Somacis.
  • The notes were issued under Rule 144A and Regulation S of the U.S. Securities Act and listed on the Luxembourg Stock Exchange’s Euro MTF market.

Impact on Somacis

The acquisition of Somacis by Bain Capital is expected to bring several operational and managerial changes. Bain Capital will acquire a controlling stake, while Chequers Capital will reinvest alongside the existing management team, led by CEO Giovanni Tridenti. This continuity in leadership aims to ensure a smooth transition and maintain the company's strategic direction. Bain Capital's involvement is anticipated to accelerate growth through both organic means and mergers and acquisitions, leveraging its expertise in international development and strategic growth initiatives.

Regarding product offerings and services, the acquisition is poised to enhance Somacis' capabilities in high-performance end-markets such as aerospace, defense, and medtech. While immediate changes to product lines are not specified, the focus on growth and increased demand for US and EU manufactured PCBs suggests potential future expansions or enhancements. Employee and customer reactions have not been explicitly detailed, but the strategic goals indicate a positive outlook on strengthening customer relations and value propositions. For founders considering business transitions, tools like Sunset can assist in managing such processes compliantly and efficiently.