Stout has advised Central Semiconductor Corp. (“Central” or the “Company”), a designer and manufacturer of discrete semiconductor solutions, on its sale to AEM (“AEM”), a portfolio company of Industrial Growth Partners (“IGP”). The transaction closed on February 21, 2023. Stout served as exclusive sell-side financial advisor to Central in connection with the transaction.

Family-founded in 1974 and headquartered in Hauppauge, Long Island, NY, Central designs, manufactures, and up-screens standard and semi-custom discrete semiconductors for a diverse base of customers within the industrial, scientific, medical, military and aerospace, communications, and commercial end markets. The Company’s unique mix of discrete semiconductor products and technologies enables Central to provide innovation-driven customers with customizable leading-edge components while continuing to support customers requiring legacy technology devices.

Based in San Diego, AEM designs and produces mission-critical, passive circuit protection, power conditioning, and radio frequency components. The acquisition of Central will provide AEM with a strong entry point into the discrete semiconductor market while significantly expanding AEM’s global distribution customer base and high-reliability product offering.

IGP is a San Francisco-based private investment partnership with over $3.4 billion of equity capital raised since inception, focused exclusively on acquiring middle-market companies in the industrial sector in partnership with management teams.

“The Stout team did an outstanding job leading us through the process of identifying the right buyer for our family business. It was extremely important to us that we moved forward with a buyer that would keep the Central Semiconductor brand name, our team, and operations intact while accelerating Central’s growth, and we have found that with AEM and IGP. We are very excited about Central Semiconductor’s continued growth under its new ownership,” said Susan Ryan, daughter of Central’s founders.

“The acquisition of Central Semiconductor provides AEM with a full suite of discrete power conditioning components, which we view as highly complementary with AEM’s existing portfolio of circuit protection products. We are excited for Central Semiconductor and its employees to join the AEM family and believe we will be better positioned to serve the needs of our combined customer base through this broader product offering,” commented Rick Busch, CEO of AEM.

“On behalf of the Stout team, it has been an honor to represent the Radgowski family in the sale of Central to AEM and IGP. Working with Susan Ryan and Tom Radgowski as well as the Central leadership team, we have come to admire a culture of integrity, perseverance, quality, and work ethic responsible for building one of the leading private discrete semiconductor brands in the industry. The combination with AEM, with IGP’s backing and the continued support of the Central management team, creates a powerhouse combination and positions Central for its next chapter of strong growth and development,” said Steven Rathbone, Managing Director at Stout, who originated and led the transaction.

Stout’s Mark Abbott, Elliot Grove, Jack Kedroski, Irune Andres, and Su Peng Lin also led the execution of the transaction.

Farrell Fritz, P.C. served as legal counsel to Central, and Paul Hastings LLP acted as deal counsel to AEM and IGP.

See more information on our Investment Banking services.