Date
10.29.24
One Equity Partners Completes Sale of Interest in Allegro Microsystems
One Equity Partners (“OEP”), a middle market private equity firm, announced that it has completed the sale of its remaining stake in Allegro Microsystems Inc. (Nasdaq: ALGM, “Allegro” or the “Company”).
Headquartered in Manchester, N.H., Allegro is a global designer, developer, and manufacturer of sensing and power semiconductor technology in the automotive and industrial markets. The Company’s diverse product portfolio provides solutions for the electrification of vehicles, automotive advanced driver assistance safety features, automation applications for Industry 4.0, and power-saving technologies for data centers and clean energy applications. The Company has more than 10,000 customers worldwide.
During OEP’s investment period, beginning in October 2017, OEP partnered with Allegro’s management team to implement a rigorous program of value creation initiatives and operational improvements. As a result of several of these value creations initiatives, Allegro was able to transform its gross margin from the low 40% range to greater than 56% as of fiscal year 2024A. Key value creation initiatives that supported this meaningful margin improvement were the divestiture of Polar to Sanken and strategic operational improvements, including facility consolidation and relocation from a high-cost to low-cost geography. Additional value creation initiatives included revamping the Company’s go-to-market strategy to drive increased focus on automotive electrification and industrial markets and three acquisitions that added new products and innovative technologies.
OEP also worked closely with the Company to prepare the business for an IPO, which was completed in October 2020.
About One Equity Partners
One Equity Partners (“OEP”) is a middle market private equity firm focused on the industrial, healthcare, and technology sectors in North America and Europe. The firm seeks to build market-leading companies by identifying and executing transformative business combinations. OEP is a trusted partner with a differentiated investment process, a broad and senior team, and an established track record generating long-term value for its partners. Since 2001, the firm has completed more than 400 transactions worldwide. OEP, founded in 2001, spun out of JP Morgan in 2015. The firm has offices in New York, Chicago, Frankfurt and Amsterdam. For more information, please visit www.oneequity.com.
