2023/08/15

BDA advises Cornell Capital-Backed Lorom on merger with In-Tech

has acquired

2023

BDA Partners is pleased to announce that its client, Cornell Capital, has merged its portfolio company, Lorom Holding Co., Ltd. (“Lorom”), with In-Tech Holdings (Cayman) Limited (“In-Tech”).

BDA Partners acted as financial advisor to Cornell Capital and Lorom on the transaction.

In-Tech is a Hong Kong based global provider of customised interconnect solutions and electronic manufacturing services. It specialises in demanding, fast-growing and highly regulated end-markets. With a long history of product co-development, high-quality solutions and on-time delivery, In-Tech has established itself as a trusted partner of choice for its customers.

Lorom is a leading manufacturing solutions provider focusing on specialised cable manufacturing, cable assembly, and innovative solutions for cabling and connectors. Lorom has partnered with Cornell Capital since October 2019. Lorom’s combination with In-Tech is its second transaction in the past 12 months. In December 2022, Lorom acquired Segue Manufacturing Services (“Segue”), a leading North American electronics manufacturer, to expand Lorom’s service offerings and diversify its global manufacturing footprint.

With the addition of In-Tech, the combined company will be a vertically integrated, end-to-end manufacturing solutions provider of cables, PCBA, and box build services. It will offer both interconnect and contract manufacturing capabilities with manufacturing facilities in the U.S., China, Malaysia and India.

“This announcement marks the creation of a one-stop-shop solutions provider, delivering customized solutions and services to our long-standing customer base,” said John X. Zhang, Ph.D., Chief Executive Officer of Lorom. “We look forward to partnering with the talented In-Tech team to support our valued customers around the world and drive the next chapter of growth of the combined company.”

Paul DiGiacomo, Managing Partner and Head of Financial Sponsors, BDA, said “This is a great outcome for Lorom, In-Tech and Cornell Capital. We are proud to have advised Cornell Capital and highly value the relationship we have built with them as they have grown their presence in Asia. This is a testament to BDA’s ability to deliver excellent buyside advisory to our financial sponsor clients.”

Simon Kavanagh, Partner and Head of Industrials, BDA, said “The combined company will create a successful vertically integrated platform and there are multiple post-merger initiatives that will grow revenues and margins. This transaction is another example demonstrating BDA’s strong industrials expertise, particularly in the EMS and electronic component space. It showcases our ability to advise clients, not just on divestitures, but also on inorganic M&A-led growth.”

Deal team

About Cornell Capital

Cornell Capital LLC is a US-based private investment firm with ~$6 billion of AUM and offices in New York and Hong Kong. Leveraging decades of global investment experience, the firm takes a disciplined approach to investing across the consumer, financial services, and industrials/business services sectors, often in companies that can benefit from the firm’s Asia presence and cross-border expertise. Founded in 2013 by Senior Partner Henry Cornell, the former Vice Chairman of Goldman Sachs’ Merchant Banking Division, the firm is led by a highly seasoned team with significant shared investment experience. www.cornellcapllc.com

About In-Tech Electronics Ltd

Founded in 1997, In-Tech is a Hong Kong-based Electronic Manufacturing and Development Services company, specializing in supplying demanding industries including automotive, medical, aerospace, marine, banking and wireless communications networks. In-Tech also develops tailored industrial grade IoT devices.

In-Tech offers turnkey solutions for new projects, as well as supplying electronic assemblies and completed products. In addition, In-Tech also uses its workshop in Hong Kong to provide repairs, refurbishment and order fulfilment services. All these activities are backed by a proficient internal IT team who provides flexible solutions according to customers’ needs. www.in-tech.com.hk

About Lorom

Founded in 1988, Lorom is a leading manufacturing solutions provider focusing on specialized cable manufacturing and assembly. In addition to its core cable technologies, Lorom offers plastic injection molding, stamping, die-casting, printed circuit board assembly and tooling processes. Lorom also possesses customized component design and manufacturing capabilities. Its vertically integrated model enables Lorom to provide a one-stop shopping platform for unique, proprietary manufacturing products and services to a blue-chip customer base, including a number of Fortune 500 companies across automotive, industrial, media, technology and medical sectors. Headquartered in Taipei, Taiwan, Lorom has approximately 4,000 employees, including more than 500 highly skilled engineers across four factories and four sales offices globally. www.lorom.com

About BDA Partners

BDA Partners is the global investment banking advisor for Asia. We are a premium provider of Asia-related advice to sophisticated clients globally, with 25 years’ experience advising on cross-border M&A, capital raising, and financial restructuring. We provide global reach with our teams in New York and London, and true regional depth through our seven Asian offices in Mumbai, Singapore, Ho Chi Minh City, Hong Kong, Shanghai, Seoul and Tokyo. BDA has deep expertise in the Chemicals, Consumer & Retail, Health, Industrials, Services, Sustainability and Technology sectors. We work relentlessly to earn our clients’ trust by delivering insightful advice and outstanding outcomes.

BDA Partners has strategic partnerships with William Blair, a premier global investment banking business, and with DBJ (Development Bank of Japan), a Japanese government-owned bank with US$150bn of assets.

US securities transactions are performed by BDA Partners’ affiliate, BDA Advisors Inc, a broker-dealer registered with the Securities and Exchange Commission (SEC). BDA Advisors Inc is a member of the Financial Industry Regulatory Authority (FINRA) and SIPC. In the UK, BDA Partners is authorized and regulated by the Financial Conduct Authority (FCA). In Hong Kong, BDA Partners (HK) Ltd is licensed and regulated by the Securities & Futures Commission (SFC) to conduct Type 1 and Type 4 regulated activities to professional investors. www.bdapartners.com

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