HOOK, UK – British private equity firm Rcapital has agreed to the purchase of STI Ltd. from Integrated Micro-Electronics for GBP2.2 million ($2.8 million).

After the closing of the acquisition, Rcapital will work on refinancing initiatives for STI that will enable the business to accelerate its growth strategy, at a time when STI’s core aerospace and defense markets are experiencing significant growth, STI said in a release.

STI provides electronics design and assembly primarily for the aerospace, defense and security sectors. It has two factories in the United Kingdom and one in Cebu. It also operates a design center in London. The current management team, led by Simon Best and Tony Best, will remain in place.

"This is fantastic news for STI. We would like to thank IMI for the past six years of their ownership and we wish them well in their new direction. We are delighted that ownership will pass back into the hands of a British company that has a track record of helping companies grow," said Simon Best. "Our order books are stronger than they have ever been and we are anticipating significant new contract wins in the next few months. I’m excited by what the future holds in store for STI and look forward to guiding it through this next chapter in its history."

"We were introduced to STI earlier this year and have been consistently impressed by STI’s people and capabilities," said Chris Campbell of Rcapital. "Following a highly competitive sales process we have now exchanged contracts and look forward to completing the transaction later this year. It’s a great business in an industry that we know well through our portfolio businesses that have exposure to the aerospace and defence markets.

"With a highly experienced team, decades of experience in mission critical applications and very strong relationships with global blue-chip clients, we have absolutely no doubt that STI will prosper in the years ahead."

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