SPS-America, founded in 2021, establishes its first brick-and-mortar facility in the U.S.

SPS-America Inc., the U.S. division of Netherlands-based semiconductor supplier and distributor SPS-International, has acquired Redstone Technical LLC in Colorado Springs.

The transaction closed April 15, said Brett Hofmann, SPS-America’s managing director. He declined last week to disclose the terms of the deal.

The deal establishes SPS-America’s first brick-and-mortar facility in the United States and reinforces its commitment to investment in the North American semiconductor industry, a recent news release from the company said.

Located at 950 Vapor Trail, the building is near Colorado Springs Airport and is situated just north of the 1,600-acre master-planned Peak Innovation Park business park, where companies including Northrop Grumman, Amazon, FritoLay and Coca-Cola operate, among others.

SPS-International, founded in 1988, has long been a supplier and distribution partner in the European semiconductor industry. It supports device manufacturers, original equipment manufacturers and research institutions in both production and development.

SPS-America was established five years ago to extend that presence to the U.S., Hofmann told The Gazette. Until acquiring Redstone, SPS’s American division has operated remotely across the country.

“Although a lot of (SPS-America employees) were in the industry and people knew us individually, the name ‘SPS’ was not known” across North America, Hofmann said. “Just about every device maker, every microchip fabrication maker in America and Canada use our products today, and they have for quite a while now. The lack of a warehouse and building was on our roadmap to get checked off. This acquisition gives us a home. This is significant to us because our business has grown exponentially over the last five years.”

Colorado Springs-based Redstone Technical specialized in semiconductor packaging and wafer handling solutions built around ePAK International product lines, the release said. It had long been the exclusive North American distribution hub for ePAK products.

The acquisition will allow SPS-America, which sells products for about 20 manufacturers, to now sell and distribute ePAK International products across North America. This extends a distribution model SPS-International has operated in Europe for more than 20 years, Hofmann said.

“That’s 700-plus customers who are buying, so it’s a significant number of activity,” he said.

The Colorado Springs facility will serve as the nucleus for SPS’ inventory, logistics and order support across the U.S., according to the release. As well as ePAK products, the expansion covers wafer handling systems, wet chemistry components and more.

Now with a centralized location in the Springs, the company can efficiently distribute its products throughout the continent, Hofmann said. The facility’s proximity to Denver, a major transportation hub, could also improve lead times, he added.

SPS-America has retained all six Redstone employees in the acquisition.

“These guys and gals are really top-notch, so we’ve not only physically added a building and a product line, which is significant growth for us, but we’re gaining fantastic Redstone employees,” Hofmann said.

SPS-America is gradually integrating its operations and product lines at the 15,000-square-foot, fully operational facility on Colorado Springs’ southeast side throughout the coming months.

Day-to-day operations will remain consistent for existing customers, the company said in the release. However, customers will now work directly with an expanded SPS team, will have access to more products and will receive stronger technical support.

“We’re extremely excited to be in Colorado Springs,” Hofmann said. “This was on our roadmap and it has come to fruition. We’re very excited about the next steps that we’re undertaking.”

SPS-America joins a robust concentration of semiconductor and advanced manufacturing companies doing business in the greater Colorado Springs area. Major firms include Microchip Technology, Entegris and Okika Devices.