In late 2013, the private equity firm HGGC bought a unit of Jabil Circuit, Inc., a contract electronics manufacturer, for $725 million. The transaction marked the biggest add-on deal in HGGC’s history. In addition, the acquisition of Jabil’s warranty repair unit was the fourth transaction in HGGC’s quest to build up iQor Holdings, an outsourcing specialist. When combined with iQor Holdings’ projected growth, the purchase of Jabil’s Aftermarket Services business unit will more than quadruple iQor’s revenue and bring its total number of employees to 31,000.
The deal was quarterbacked by Gary Crittenden, the chairman and managing partner of HGGC, who also serves as the chairman of the board of iQor. HGGC appears to be a logical buyer for Jabil’s Aftermarket Services unit (warranty and repair) because iQor concentrates on customer service, and the Jabil unit focuses on the replacement and repair of consumer products. In addition, both companies serve many of the same clients.
In mid-2013, HGGC hired Hartmut Liebel, the former CEO of Jabil Aftermarket Services, to oversee iQor. Crittenden said that HGGC plans for a long-term investment in iQor.