The Selling Company: Cal-Sensors is the world’s leading semiconductor manufacturer of lead salt based 1-5 micron wavelength commercial infrared detectors. These detectors are a key component primarily used in instruments to measure precise gas concentrations in applications such as: gas detection; moisture analysis; non-contact temperature measurement; flame detection; combustion control; spectroscopic; imaging; medical; and automotive exhaust.
Why the company was sold: The company had many small shareholders that had held their stock for nearly 20 years and were seeking liquidity. The Chairman was also seeking liquidity and the ability to phase out of the company operations.
Capital Alliance’s Performance: Capital Alliance’s technology experience played a key role in understanding the narrow and complex technologies of the selling company, then properly matched these technologies with the appropriate acquirer prospects.
Terms of the Transaction: Payment was in cash at the closing, with a modest escrow held for several quarters.
The Acquiring Company: Illinois Tool Works (NYSE: ITW) has annual revenue exceeding $14 billion from 750 business units worldwide, involving 55,000 employees. In the past two decades, ITW’s earnings have grown at a compound annual rate of 16.6%. ITW has a very active acquisition program focused on manufacturers of engineering products.
This transaction represents the second time Illinois Tool Works has purchased a company through Capital Alliance. The earlier transaction was with Liberty Industries, Inc. headquartered in Youngstown, Ohio.