One Equity Partners, New York, a middle market private equity firm, has acquired SGB-SMIT, Regensburg, Germany, which the firm said is “the largest independent, pure-play manufacturer of power transformers.” Terms of the private transaction were not disclosed.
SGB-SMIT supplies transformers to utilities, grid operators, renewable energy OEMs and industrial clients. Its origins date back to 1900 and today the company is among the leading medium-sized manufacturers of transformers in Europe, supplying customers worldwide from six production sites in Germany, the Netherlands, Romania, Malaysia and the U.S.
“SGB-SMIT clearly differentiates itself from conglomerates and regional challengers through its close proximity to customers in core markets, a strong focus on cost, and providing custom solutions on short lead times,” One Equity said in a release. “These characteristics have the company well positioned to help customers meet increasing electricity demand. In addition SGB-SMIT benefits from growing maintenance and infrastructure replacement needs in developed markets due to new efficiency regulations and increased grid complexity.”