Electronics OEM M&A ramps up across Europe
Europe's booming EMS supply chain sees increased M&A driven by strategic realignments, market expansion, and tech acquisition, with interest from Asia and private equity reshaping the industry.
Boomtime: Riding the wave to record revenues
Europe's EMS market is booming. OEMs grew at 11% last year, and are projected to reach record revenues in 2030 - driven by automotive, healthcare, and industrial demand. While Germany leads, the UK sees strong growth through outsourcing. However, Europe heavily relies on imports.
The PCB market is growing steadily, focusing on sustainability and advanced tech for EVs and medical devices. Consolidation through M&A is accelerating as companies seek stronger technology and market presence, driven by supply chain shifts and re-shoring opportunities. Despite challenges like import reliance and environmental regulations, investments in IoT, EVs, and government initiatives like the European Chips Act are shifting EMS industry structure.
Consolidators battle it out in Europe
Driven by strategic realignments, market expansion, and the pursuit of specialised capabilities, the European electronics manufacturing landscape is witnessing notable cross-border M&A activity, including both divestitures of non-core assets to international players and acquisitions aimed at entering new markets and bolstering technological portfolios.
- Dutch automation and digitisation component maker TKH Group has divested non-core German OEMs HE System Electronic (€21m rev p.a) to Magna International of Canada, and Dewetron (€30m rev p.a) to Anritsu Corp of Japan. TKH has also made three acquisitions as it pursues a more focused corporate strategy on automation and electrification.
- Private equity-backed French components manufacturer Steliau Group entered the UK market with the acquisition of Alpha Micro Components, which specialises in antennae and Bluetooth modules for wireless assemblies.
- Hong Kong PCB group Starteam Global bought Italian PCB specialist CTB last summer. The factory near Milan is being converted into an ‘innovation hub’ for prototyping, customisation and high mix low volume orders.
- Swedish industrial EMS group Inission AB acquired Selteka of Lithuania to boost Nordic-Baltic capabilities, after CapEQ introduced the two parties.
M&A insights
- Multinational EMS groups are constantly re-prioritising their markets, customer base, and capabilities to seize more opportunities in new and old electronics supply chains.
- European EMS M&A is particularly active among Asian acquirers from Japan, Korea, Taiwan and Hong Kong all recently gaining share of electronics supply chains.
- Private equity investors are closing more deals in the OEM space as they seek solid returns and deeper understanding of emerging industries from smart cities to EVs, and renewables to next-gen medical gadgets.
Why this matters
Amid more independent contract manufacturers receiving unsolicited approaches to buy their company, business owners and CEOs need to know how best to respond. Having an experienced M&A advisor in your back pocket helps you explore offers while keeping you up to speed on competitors changing hands or securing major investment.
Additionally, with so much going on, it’s a good time to work out your own growth strategy, succession plans and shareholder exit options. An impartial M&A advisor like CapEQ helps you weigh up the pros and cons of each route.
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