Electronics Production | February 08, 2008
List: 51 EMS transactions in 2007
There were 51 completed EMS transactions in 2007, one less than the 52 recorded in 2006. EMS Consolidations were once again the most common type of transaction in 2007 with 19 transactions in 2007, or 37% of total activity, compared to 22 transactions in 2006 which represented 42% of activity last year.
In 2007, there were ten Vertical/Horizontal Convergence transactions. This was down significantly from 2006. The ten transactions in 2007 represented 20% of the total, compared to 18 transactions representing 35% of the total last year. OEM divestitures doubled from five transactions in 2006 to ten in 2007. As a percentage of total transactions, OEM divestitures went from 10% in 2006 to 20% in 2007. EMS divestitures went from three transactions in 2006 to five transactions in 2007. As a percentage of total transactions, EMS divestitures rose from 6% to 10% for 2006 and 2007, respectively. Lincoln International began tracking Private Equity activity in the EMS industry in the 2nd half of 2006. For the first full year of tracking, 2007, Private Equity Investments tallied seven transactions, or 14% of total transactions. For the half year of transactions in 2006, Private Equity Investments totaled four transactions. Lincoln expects this category to continue to grow in subsequent years as activity from Private Equity Groups in the EMS industry continues to increase. The information below should be read as following: Number, Date, Acquirer, Seller, Target, Type. Type Key: 1=EMS Consolidation, 2=OEM Divestiture, 3=Vertical/Horizontal Integration, 4=EMS Divestiture, 5=Private Equity Investment. Source: Lincolninternational