Cicor enter into a strategic supply partnership with Mercury
Cicor Group has entered into a strategic supply agreement with Mercury Mission Systems International S.A. (Mercury), a technology company active in the global aerospace and defence industry, under which Cicor will acquire a manufacturing operation in Plan-Les-Ouates, Switzerland.
In anticipation of increased European and global demand for defence products, Mercury's management has decided to streamline internal operations and transfer a part of its European electronics manufacturing to Cicor.
The move will allow Mercury to focus on its core competencies of engineering design and systems integration to drive growth in the international market. Cicor, who has a strong footing in aerospace and defence (A&D) electronics, was selected as the outsourcing partner due to its expertise and geographic presence across Europe, a press release reads.
The collaboration includes the acquisition of a Mercury manufacturing site in Plan-Les-Ouates, Switzerland with 34 employees. Additionally, Mercury and Cicor have jointly decided to relocate production to the Cicor sites in Newport, UK and Bronschhofen, Switzerland within the next 18 months.
"The transaction is further proof that Cicor's pan-European platform for the development and manufacturing of mission critical electronic solutions responds perfectly well to the need of the European A&D industry to establish robust and scalable supply chains," Cicor writes in the press release.
Together with Cicor's acquisition of MADES S.A.U. in Spain, the partnership with Mercury will further expand the EMS provider's presence in A&D.
The transaction is expected to be completed within approximately one month, subject to customary closing conditions including end customer consents.
Mercury has committed to Cicor to – over the next five years – purchase products with a total value in the high double digit million CHF range. Both parties also intend to deepen the strategic business relationship, which should create additional revenue potential in the coming years.
