Slight increase in M&A activity in 2014

EMS Consolidations were the most common type of transaction with 17 transactions in 2014 (or 52% of total activity), compared to 10 transactions in 2013. In 2014, there were 10 Vertical/Horizontal Convergence transactions (this year’s activity represented 30% of the total), up from the seven recorded in 2013. Private equity investments were slightly up, compared to five in 2013, with six total transactions in 2014 (or 18% of the total). Lincoln expects that this increase was due in part to the strong market growth and favourable financing market conditions during the year. There were zero EMS divestitures in 2014, compared with one transaction in 2013. There were also zero OEM divestitures in 2014, compared to one in 2013. 17 of the deals completed in 2014 were in North America. This represented 52% of the transactions closed in 2014. 11 transactions were consummated in Europe in 2014, representing 33% of total transaction volume. Three transaction were between two different high-cost regions (9% of the total). The other transactions were split amongst other geographies with one occurring in Asia (3%) and one between high-cost regions and low-cost regions (3%). No transactions occurred in other geographies. In terms of the size of transactions, 2014 was dominated by the Small Tier, with 27 transactions, or approximately 82% of total activity. Four transactions of Mid Tier EMS providers were closed during the year, representing approximately 18% of the total. There were zero transactions of Large Tier EMS companies during 2014. © Lincoln International