Electronics Production | January 20, 2009

48 completed EMS transactions in 2008

With 48 completed EMS transactions in 2008, the year falls short of the 51 recorded transaction in 2007. From those, EMS Consolidations were the most common transaction in 2008, with 19 consolidations (40% of total activity). While 2007 had the same number of consolidations, those represented only 38% of that year's activity.
In 2008, 17 Vertical/Horizontal Convergence transactions occurred (representing 35% of the total activity), significantly higher than the 10 transactions recorded in 2007, states Lincoln International. OEM divestitures accounted for 4 transactions last year (just 8% of total activity's) compared to 10 in 2007. EMS divestitures remained in level, with 5 recorded transactions for 2007 and 2008 (10% of total activity) alike. Private Equity Investments recorded 3 transactions (6% of total activity), while 2007 recorded 7 such Private Equity Investments, the report continues.

Of these transactions, 4 deals were cross border; 3 between low-cost regions / high-cost regions, and 1 between two different high-cost regions. 20 transactions occurred within the U.S. and Canada (42% of total), 20 occurred within Europe (42%) and four occurred within Asia (8%), Lincoln International states. All transactions in 2008 were led by Micro Tier (34); Large Tier and Small Tier EMS providers with 3 transactions each; and 8 Mid Tier transactions.

EMS-Size-Guide (sales $): Large (Tier1) greater than $300 billion; Mid (Tier2) $300 million to $300 billion; Small (Tier3) $150 million to $300 million; Micro (Tier4) below $150 million

Image Source: Asteel
Source: Lincoln International


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