Innovative Components acquired by U.K. firm
Innovative Components, a Schaumburg-based manufacturer and distributor of knobs, pins, and handles for a broad range of industries, has been acquired by U.K.-based Essentra PLC for an undisclosed sum.
XLCS Partners, a Chicago-based middle market investment bank, acted as adviser to Innovative Components in the all-cash sale and made the announcement.
Essentra is a manufacturer and distributor of components for a wide variety of markets, from packaging products and cartons to ID card printers and systems, according to information provided by Essentra. It's Filters division is the only global independent supplier of cigarette filters.
Essentra's network extends to 34 countries and includes 8,000 employees, 45 principal manufacturing facilities, 30 sales and distribution operations, and four research and development centers.
The acquisition of Innovative Components “both strengthens and extends our product range while adding further valuable manufacturing capacity in the Americas,” Essentra CEO Paul Forman said.
“Innovative Components is a strong strategic fit with our own successful hardware business and another example of the attractive acquisition opportunities available to our Components division,” Forman said.
Essentra officials did not say Thursday whether Innovative Components Founder and President Mike O'Connor would remain with the company, nor did they comment on whether any changes would be made at the Schaumburg facility or its second manufacturing facility in Costa Rica, Componentes Innovadores Limitada.
O'Connor said in a statement that the acquisition by Essentra “is highly complementary” to its current operations, “sharing many of the same core values, competencies, and goals.
“I am convinced we will have a successful and profitable integration,” O'Connor said.
Established in 1992, Innovative Components produces more than 3,000 types of knobs, quick-release pins, handles and other pieces in the “quick release hardware” industry for more than 1,000 commercial customers. The parts can be found on a wide range of devices, from lawn mowers and weed trimmers to office furniture and desk stands.
It opened a manufacturing facility in Costa Rica in 2006.
The company employs about 100 people, O'Connor said in a 2018 interview with the Daily Herald Business Ledger, and also runs an apprenticeship program through its Costa Rica facility. The company also works with District 211's Adult Transition Program, giving special needs students the opportunity to be exposed to the manufacturing environment and learning a skill that can translate into full-time work,
Anthony Contaldo of XLCS was lead adviser for Innovative Components in the transaction.