ECA

 The Company

Stamping Specialties Corporation, doing business as Electro-Component Assembly Company (ECA), is the leading medical contract manufacturer specializing in the design, development, and manufacture of disposable torque wrenches, hexagon keys, and solid wrenches used in pacemakers, defibrillators, and other implantable medical devices. Based in Newbury Park, California, ECA distributes its products to leading pacemaker and defibrillator OEMs that then package the appropriate wrench or key with their own implantable cardiac devices. ECA sells more than 1.5 million wrenches per year to the world’s largest manufacturers of implantable cardiac devices, including Medtronic Inc., Guidant Corporation, and St. Jude Medical Inc.

The Situation

ECA’s shareholders sought to sell the business in order to provide liquidity as they reach retirement. ECA retained KPMG Corporate Finance as its exclusive adviser to facilitate the sale of 100 percent of its stock. Simultaneously with the sale, the shareholders sought to carve out a non-core subsidiary of the holding company to a related party.

The Transaction

KPMG Corporate Finance conducted a competitive sale process to identify the optimal buyer that would enable the shareholders to exit the business. KPMG Corporate Finance developed significant interest in ECA through a controlled auction, coordinated management meetings and due diligence, and assisted the shareholders in successfully negotiating the sale to American Capital Strategies, Ltd. (Nasdaq:ACAS), a buyout and mezzanine investment company. KPMG Corporate Finance negotiated a valuation and structure that significantly exceeded the shareholder’s expectations. KPMG Corporate Finance’s knowledge of the industry and strong relationships with financial investors was fundamental to its ability to deliver superior financial advice.