Nordic EMS firms step up M&A pace with defence-driven expansion

Among the most active players was Sweden’s Hanza, which accounted for three transactions during the year. The company acquired Leden Group, Milectria and BMK Group, significantly expanding both its geographic footprint and production capacity.

The largest deal of the year was Hanza’s acquisition of BMK, completed in January 2026 and valued at approximately SEK 2.15 billion (approximately EUR 209 million). The transaction adds substantial scale, including 40,000 square metres of production space and 18 SMT lines, and strengthens the company’s position in key European markets.

More broadly, the 2025 deal flow highlights a clear sectoral trend: a strong shift toward defence and aerospace-related manufacturing. Several of the acquired companies have significant exposure to these segments, including Milectria, which specialises in electrical systems for military applications, and BMK, which supports complex industrial and defence-related production.

A similar pattern can be seen in acquisitions carried out by Scanfil, which acquired a majority stake in ADCO Circuits and later acquired MB Elettronica. Both companies have notable exposure to aerospace and defence, with the segment accounting for a significant share of their revenues. The ADCO acquisition expands Scanfil’s presence in the US market, while MB Elettronica strengthens its position in Southern Europe

Norwegian EMS provider Kitron followed a similar trajectory with its acquisition of DeltaNordic. The deal strengthens Kitron’s presence in Sweden while expanding its capabilities in defence electronics and systems designed for harsh and mission-critical environments.

At the same time, several transactions underline a broader geographic expansion strategy among Nordic EMS companies. Incap’s acquisition of Lacon Group adds manufacturing capacity in Germany and Romania, while Note strengthened its position in the UK through the acquisition of Kasdon Group, an EMS provider with a strong presence in the defence sector, which accounts for approximately 50% of its revenue. Meanwhile, Inission expanded into the Baltics with the acquisition of UAB Selteka.

Taken together, the transactions point to a clear pattern: Nordic EMS providers are increasingly positioning themselves as international manufacturing partners, building broader footprints across Europe and beyond while targeting sectors with long-term growth potential.

The mix of larger, capacity-driven acquisitions – such as BMK, DeltaNordic and Lacon – and smaller, strategic add-ons further suggests a dual-track approach to consolidation, combining scale-building with targeted market positioning.

Overall, the level and direction of M&A activity in 2025 indicate that consolidation remains a key strategic tool for Nordic EMS companies seeking to strengthen competitiveness in a global market, with defence and aerospace emerging as particularly important drivers.

Worth mentioning, on March 20, 2026, Swedish EMS provider Note announced the acquisition of STI Enterprises Holdings Limited, a UK-based manufacturer of electronic solutions for the defence industry.

STI operates two production facilities in Hook and Poynton, providing advanced PCBA, box-build, and testing services for air, land, cyber, and marine defence applications. The deal further underlines the broader trend seen throughout 2025: high-reliability segments – particularly defence – are set to remain a strategic priority for Nordic EMS providers as they continue to expand capabilities and reach.

The developments outlined in this article were presented as part of The Nordic EMS Advantage at Evertiq Expo Tampere on March 26, 2026, highlighting the broader strategic direction, sector focus, and competitive positioning of Nordic EMS providers across Europe and beyond.