According to Lincoln International’s DealReader EMS report for the first quarter of 2016, there were nine completed transactions in Q1 2016, representing an increase in recent M&A activity compared to the seven transactions recorded in the previous quarter. On a comparative basis, this represents an increase from the four transactions reported in Q1 2015.
EMS consolidations were up from the last quarter, representing four transactions in Q1 2016 compared to one transaction in Q4 2015. On a comparative basis, this is up from the one EMS consolidation reported in Q1 2015. There were two EMS divestitures in Q1 2016, up from one transaction in Q4 2015 and also up on a comparative basis as no EMS divestitures were reported in Q1 2015. Additionally, transactions categorized as private equity investments, vertical/horizontal convergences and diversification into EMS each accounted for one transaction in Q1 2016. No transactions categorized as OEM divestitures occurred in Q1 2016.
Five transactions occurred within Europe in Q1 2016 (56% of the total transactions), up from two transactions in the previous quarter. On a comparative basis, no transactions occurred within Europe in the same quarter of 2015. Three transactions occurred in the U.S. and Canada (33% of the total transactions) in Q1 2016, down from the four in the previous quarter. There was also one cross-border transaction in Q1 2016, which reflects the same activity as the previous quarter. There were no transactions in Asia this quarter.
These transactions are as follows:
- Chemigraphic has acquired CRS Electronics (January)
- Ducommun has sold its Pittsburgh, PA business unit to a private investment group (January)
- Foxconn Interconnect Technology has acquired Avago’s optical module business unit (January)
- A private investment group has acquired Alliansys SA (February)
- PPI-Time Zero has acquired New Age EMS (February)
- Prettl Electronics has acquired Baltic Elektronik (February)
- SVI Public Company Limited has acquired Seidel Electronics (February)
- Ducommun has sold Miltec Corporation to General Atomics (March)
- Schouw & Co. has acquired GPV International (March)