After 46 years of family proprietorship, the Shanes have decided to sell Qual-Pro. The brothers firmly believe this acquisition cements their father’s legacy by making Qual-Pro operationally and financially stronger than any time in the company’s history.
The acquiring company is SFO Technologies, a large privately owned, stable $300+ million diversified company based in India with locations in Asia, North America, Europe and the Middle East.
This is a strategic purchase for SFO and strengthens their global footprint as they currently provide design and manufacturing services for many US-based companies from their existing facilities in India. SFO’s vertically integrated design and manufacturing capabilities cover electronics, wire harness, fiber optics, magnetics, mechanical fab, tooling and machining. In fact, we share some of the same customers so synergies are there too. Qual-Pro represents SFO’s beachhead in North America, providing them with a world-class ITAR manufacturing facility. Qual-Pro’s Thailand manufacturing arm provides SFO with a world-class, high quality, volume manufacturing facility in a desirable, high tech business park north of Bangkok. In short, Qual-Pro is a perfect fit for SFO and an integral part of their growth plans.
SFO’s intent is to keep things at the status quo. Both facilities will remain operating as they do now with the same personnel. Very little change is expected in personnel and structure with the exception of additional engineering resources to complement existing engineering, procurement, project management and manufacturing teams. As a result, customers are assured that this acquisition and transition will be seamless and will not cause any disruption to programs running at Qual-Pro. Furthermore, government authorities involved in both ITAR and CFIUS have approved this purchase.
Qual-Pro’s 200 employees will join SFO’s global workforce of 4,400 employees . SFO’s design, engineering and vertically integrated manufacturing will combine with Qual-Pro’s strong presence as a leader in aerospace, defense, medical and industrial EMS. The combined entity will offer customers increased supply chain and sourcing efficiencies, a global design and manufacturing footprint and application software development resulting in cost effective product realization from concept to sustaining production.
This acquisition also allows Qual-Pro a restructuring of their balance sheet and will enable faster growth leveraging SFO’s strong financial credentials.
“The desire to say ‘Made in the U.S.A.’ is what originally brought SFO to Qual-Pro. As we learned about each other’s objectives, it became clear that SFO serves their customers better by having a world class manufacturing and design center in the United States. It became clear that Qual-Pro will serve its customers better by offering increased supply chain leverage, a vertically integrated suite of products and services and having the financial resources of a large, global company,” said Brian Shane, Qual-Pro CEO.
For more information contact:
Brian Shane, CEO