Argand Partners Completes Dividend Recapitalization for Sigma Engineered Solutions

In a significant move within the private equity landscape, Argand Partners, LP based in New York, has announced the successful execution of a dividend recapitalization for Sigma Engineered Solutions, a notable player in manufacturing precision metal components. This strategic initiative aims to return capital to investors while enhancing operational flexibility within Sigma, marking a pivotal chapter in the company’s growth trajectory.

Founded on the principles of targeted investment, Argand Partners, which also has a presence in the San Francisco Bay Area and Miami, expressed optimism regarding Sigma's impressive expansion in various industrial sectors. Sigma provides crucial components that cater to electrical distribution, power transmission, and instrumentation, significantly impacting several global markets.

Growth and Performance

Charlie Burns, a Partner at Argand Partners, acknowledged the remarkable advancements made by Sigma under the leadership of CEO Brad Ward. He commended the efforts of Ward's team in broadening the company's customer base and building on their competitive advantages, which include their engineering expertise and vertically integrated global supply chain.

With operations centered in Garner, North Carolina, Sigma Engineered Solutions also boasts manufacturing facilities across India, Mexico, and the United States. This geographical diversification is crucial as it enables Sigma to leverage its engineering skills and distribution capabilities to serve multinational corporations effectively. Brad Ward remarked, "This transaction is a strong endorsement of the progress we've made and the opportunities ahead." Underlining the partnership with Argand, he emphasized the value of the support provided in scaling operations and enhancing service delivery to customers and stakeholders.

The Transaction

The recapitalization process also involves a substantial upsizing of Sigma’s credit facility, with participation from Ares Management and Apogem Capital. This financial maneuver not only illustrates Argand’s confidence in Sigma’s operational capabilities but also reinforces the company's strategic positioning in the precision metal components sector, an industry witnessing an increasing demand due to trends in electrification and connectivity.

Heather Faust, Managing Partner at Argand, highlighted Sigma's reputation as a trusted partner for multinational Original Equipment Manufacturers (OEMs) because of its unique combination of just-in-time distribution and its operational excellence. This enables Sigma to meet the rising demands and quality expectations in a competitive market.

The partnership with Argand represents a commitment to continue supporting Sigma as it navigates its next growth phase. This strategic move is expected to enhance Sigma’s ability to meet customer requirements while ensuring the company remains a leader in the precision engineering space.

About Argand Partners

Argand Partners, a notable player in the middle-market private equity space, focuses primarily on investments in manufacturing, distribution, and business services companies that are strongly rooted in the U.S. The firm aims to drive growth by employing a hands-on approach in its partnerships, fostering sustainable competitive advantages for the companies in its portfolio.

As a signatory to the UN-supported Principles for Responsible Investment, Argand Partners remains committed to ethical investment practices, ensuring their strategies align with broader societal objectives. With its continued focus on niche markets and operational excellence, the firm is poised to foster significant growth and innovation across its investments.

For more information about Argand Partners or Sigma Engineered Solutions, interested parties are encouraged to visit the respective company websites or contact their representatives directly.