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Punching Out: 2023 PCB and EMS M&A Review

M&A picked up for both the PCB and EMS sectors in North America in 2023, despite a challenging overall M&A market. Higher interest rates, concerns over the economy, and global crises caused global M&A activity to fall in 2023. However, the technology/electronics sectors fared better than others.

In the North American PCB sector, there were 13 deals closed in 2023 vs. five in 2022 and 12 in 2021.  Some of the notable deals in the PCB sector in 2023 were:

• APCT (Industrial Growth Partners) acquired Advanced Circuits (Compass Diversified) (Feb 2023)
• Ampel (IL) acquired Multilayer (TX) (March 2023)
• APCT (IGP) Acquired San Diego PCB Design from Milwaukee Electronics (April 2023)
• Infinitum (TX) acquired Circuit Connect (NH) (April 2023)
• FTG (public, Canada) completed the acquisition of IMI (MA) (announced in Nov 2022, completed April 2023)
• FTG (public, Canada) completed the acquisition of Holaday Circuits (MN) (announced in Dec 2022, completed April 2023)
• NCAB (Sweden, public) acquired Phase 3 Technologies (CA, distributor) (May 2023)
• Technoprobe (Italy) acquired Harbor Electronics (CA) (July 2023)
• Sunstone Circuits (OR) acquired by American Standard Circuits (Gemini Investors, IL, July 2023)
• ICAPE (Public, France) acquired Nujay Technologies, PCB Solutions, and Ustek Incorporated (Oct 2023)
• Epec Engineered Technologies (MA) acquired Precision Technology Inc. (UT) (Nov 2023)

For the most part, these were “roll-up” deals in which the buyer is a larger strategic player. Most of the buyers were non-U.S. companies, including FTG (Canada), NCAB, Technoprobe, and ICAPE. At least part of the strategy for those deals was greater access to U.S. markets. Four of the deals were for PCB distributors, one for a PCB design firm, and the rest were for shops that are primarily manufacturers.

In the North American EMS sector, there were 16 closed deals in 2023 vs. 13 in 2022 and 23 in 2021. Some of the notable deals were:

• Enercon (Maine) acquired by EW Healthcare Partners (May 2023)
• Incap (pubco Finland) acquired Pennatronics (PA) (July 2023)
• Tide Rock Holdings (PE) acquired Pro-Active Engineering (WI) (August 2023)
• Vexos (NY/OH, Centre Lane Partners) acquired ControlTek (OR) (September 2023)
• Jabil (Public) acquired Intel’s Silicon Photonics Business (Nov 2023)
• Jabil (Public) acquired Procurability (FL) (Nov 2023)
• EmeraldEMS (Crestview) acquired Ascentron (OR) (Nov 2023)
• LFM Capital acquired SisTech Manufacturing (OR) (Nov 2023)

Private equity was very present in 2023, and involved in 10 out of 16 EMS deals. Publicly-traded Jabil made two U.S. acquisitions and one in Scotland (Retronix), all of which appear to expand Jabil’s EMS-related services.

In other industry -related deals: PE firms Tide Rock Holdings acquired Specialized Coating Services (conformal coating, potting, etc.) and Gladiator Capital Group acquired BEST (PCB Repair and Training).

For 2024, largely due to demographics in the PCB and EMS industries, the number of deals should continue to be strong due to owners retiring. PE firms have plenty of liquidity, which should keep deals rolling. The effects of reshoring, government incentives, and the continued increased percentage of electronics in everything should keep investors interested in the sector. IPOs do not seem to be making a comeback at all, but larger companies can merge or exit by sales to larger PE firms, so that should keep investments coming into the industry.

Aside from Jabil’s three deals, larger public companies have not been very active in the PCB and EMS sectors for several years. Now that the component shortage has eased somewhat and other conditions may have stabilized, one would think that a few “mega-mergers” will occur.

One trend that I continue to mention is the decline in the number of North American PCB and EMS companies, which is currently at around 150 and 900, respectively. TTM’s announcement of a new $130 million PCB plant in New York is fantastic news, but about five to 10 small shops per year will most likely be closing. I expect this trend to continue until the number of North American PCB shops gets down to about 50. EMS shops do not appear to be closing as quickly, but the general trend in the number of shops is down. Although the number of shops is declining, most of those PCB and EMS shops that remain will be in a better position to invest, compete, and grow both organically and through acquisitions, which is a good thing for the industry.

Tom Kastner is the president of GP Ventures, an investment banking firm focused on sell-side and buy-side transactions in the tech and electronics industries. GP Ventures has offices in Chicago and Tokyo, with five people in total. Tom Kastner is a registered representative of, and securities transactions are conducted through StillPoint Capital, LLC—a Tampa, Florida, member of FINRA and SIPC. StillPoint Capital is not affiliated with GP Ventures.