Investment Firm to Buy Aavid

Electronic News, August 30, 1999 by Bernard Levine

Chicago investment firm Willis Stein & Partners will acquire heat sink maker Aavid Thermal Technologies Inc. in a $260 million deal.

The private equity investment firm has agreed to acquire Concord, N.H.-based Aavid for $25.50 per share in cash, or $260 million. Aavid, a provider of thermal management solutions for dissipating heat from digital and power electronics, in June said it was in discussions regarding a possible sale of the company to a private investment firm.

Willis Stein & Partners specializes in privately negotiated investments in the manufacturing, technology and telecommunications industries among others. Avy H. Stein and Daniel H. Blumenthal, both of Willis Stein, will join Aavid's board of directors upon completion of the acquisition, which is expected in the fourth quarter.

The acquisition includes the company's three wholly owned subsidiaries: Aavid Thermal Products Inc., Fluent Inc., and Applied Thermal Technologies Inc. In addition, Aavid has entered into a definitive Stock Purchase Agreement to acquire the thermal management sector of Bowthorpe plc for $79.5 million in cash. The Aavid acquisition at $25.50 per share is conditioned on Aavid's purchase of the Bowthorpe plc sector. Willis Stein will still proceed even if the Bowthorpe deal does not occur, although the price per share would drop to $24.50.

Aavid serves North America, Europe and the Far East with manufacturing operations in Laconia, N.H.; Santa Ana, Calif.; Terrell, Texas; Toronto, Ontario; China; Singapore; Taiwan and the United Kingdom. In addition to its thermal management products, Aavid develops Computational Fluid Dynamics Software for computer modeling and flow analysis of products, reducing or eliminating the need for expensive physical models and the time necessary to test them.

Willis Stein & Partners has a background in manufacturing, technology and telecommunications, having recently acquired LISN Inc., an independent provider of engineering, furnishing and installation services to the telecommunications industry. In addition, Willis Stein recently formed USApubs.com, a marketer of magazine subscriptions and other services through a variety of channels including the Internet, telemarketing and direct mail.