GPV and Enics merges – creating a new European EMS giant
Danish EMS provider GPV is merging with Swiss-headquartered EMS provider Enics. The transaction values the combined business at more than DKK 4 billion (EUR 537.7 million).
The merger of the two companies will create one of Europe's largest EMS companies with more than 7,500 employees and revenue of more than DKK 7 billion (EUR 941 million).
The Danish industrial conglomerate Schouw & Co., will hold 80% of the merged entity, while the current owner of Enics, Ahlström Capital B.V, will hold 20%. Additionally, as a result of the transaction, Ahlström Capital will receive approximately EUR 60 million in cash.
“This is a combination of two equally strong and very competent companies. With the merger, we take yet another significant step on our growth journey. In 2018, we successfully acquired the Swiss electronics manufacturer CCS, which had revenue of DKK 1.6 billion. That lifted GPV into the top ten of EMS companies in Europe, and we have since delivered solid results. Based on our track-record from the integration of CCS, we’re now looking to repeat the success. Together with Enics, we’re creating the second-largest EMS group headquartered in Europe,” says GPV's CEO Bo Lybæk in a press release.
Bo Lybæk will lead the integration of the two businesses into the new combined company.
“Enics and GPV are a perfect match. I look forward to laying the foundation for this strong European industrial platform. Together, both companies have even stronger capabilities to provide turnkey offerings that will make the combined company a success in the fast-changing EMS market. I’m confident that together we will be driving the sustainable success of our customers and leading the way to change how EMS companies operate in complex ecosystems,” adds Elke Eckstein, CEO of Enics.
Today, Enics has seven factories in Europe and Asia across Finland, Sweden, Estonia, Slovakia, China, and Malaysia, while GPV has 12 factories located in Denmark, Switzerland, Germany, Austria, Slovakia, Mexico, Sri Lanka, and Thailand.
Enics is focused on electronics manufacturing with a strong operational set-up and a well-developed test-system business, while GPV besides electronics specialises in product application design, in-house mechanics, and cable-harness assemblies. GPV has been particularly successful with its box-build mechatronics products, an area where both Elke Eckstein and Bo Lybæk see great potential going forward, including for Enics’ current customers.
Closing of the transaction is subject to customary approvals, including from competition authorities.