The Gores Group has agreed to acquire TE Connectivity’s touchscreen supplier business Touch Solutions for $380 million cash, the firm announced in a statement.
The firm made the acquisition from its $2 billion third flagship vehicle that closed last year, managing director of M&A Anthony Guagliano told Private Equity International.
Gores Group has been extremely active on the buy side over the last several months, acquiring autoparts company The Hay Group, data center operator Alpheus Communications, logistical service provider The Clark Group as well as agreeing to a $1 billion deal for aftermarket automotive retail chain Pep Boys.
“It really does come down to timing and opportunity,” Guagliano said. “It just so happens that they’re sort of back to back.”
Touch Solutions supplies touch screens, monitors and computers. The company generated $413 million in sales in the last fiscal year, according to a release.
“We have a particular expertise in doing complicated carveouts … and we thought it would fit in well with that operational expertise and our technology expertise,” Guagliano said.
This is not the firm's first deal with TE Connectivity. In 2007, Gores acquired Tyco Electronics Power Systems from TE Connectivity, which was then a part of Tyco International, for $100 million. Gores later renamed the carve-out Lineage, which it sold to GE last year in a deal valued at $520 million.
The firm, which was founded by chief executive officer Alec Gores in 1987, typically targets US or European companies that are underperforming or distressed. Gores Group maintains offices in Boulder, Colorado and London, and is headquartered in Los Angeles.