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Punching Out: 2024 North American PCB and EMS M&A Review

M&A deal-making in the North American EMS sector was strong in 2024 with 21 deals, whereas activity in the PCB sector was pretty weak with only three deals. The 21 deals in the EMS space compares favorably with 18 completed in 2023 and 13 in 2022. The three deals on the PCB side are notably weak compared to 13 in 2023 and five in 2022.

The relatively strong M&A market for EMS companies is mostly due to private equity interest in the sector, some overseas interest, and some public company deals.  Private equity continues to invest money into the EMS sector as well as into almost every sector in the economy. PE buyers cite positive aspects of the EMS sector such as reshoring, government support such as the CHIPS act, increasing levels of electronics in everything, robust defense budgets, and potential tariffs as some of the reasons for investing in the sector.

In contrast, weak revenues and backlog contributed to the slow M&A market for PCB shops. From our experience, buyers are interested in the PCB sector, but deals just did not happen in 2024. One reason is the scarcity of PCB shops in general, which is hovering around 125 or so: The fewer number of shops, the fewer potential number of deals.

Many PCB owners are of retirement age, but they are willing to wait until market conditions are better.  Many also have higher revenue expectations for 2025. There is a mismatch between overseas buyers and the valuations in North America, especially given that many smaller shops are in older facilities with outdated equipment. The U.S. market is seen to have a lot of potential, but many smaller shops have a CapEx deficit and the larger, more suitable shops are not necessarily for sale. I expect that there will be more deals completed in 2025 due to pent up demand on the parts of both buyers and sellers and due to the current momentum in the market, which is picking up.

On the EMS side, here are some of the significant deals that were completed in North America in 2024:

• Kaynes Technology (India) acquired Digicom Electronics (CA) for $2.5 million   Jan 2024
• Accutronics (MA) acquired by Hartwood Point (PE) Jan 2024
• Cablenet Aerospace (CO) acquired by Tide Rock Holdings (CA) April 2024
• Charles E Gillman Inc acquired by kSaria (MA, owned by Behrman Capital) April 2024
• (Note: kSaria itself was subsequently sold to ITT in August, 2024)
• OneMonroe (MI) acquired GMA Manufacturing (AZ) April 2024
• EmeraldEMS (Crestview) acquired Optimum Design Associates (CA) May 2024
• Flex (public) acquired FreeFlow (TX) May 2024
• ACDi acquired QinetiQ (VA) May 2024
• Although not an M&A deal, Aimtron Electronics went IPO in India in June.
• Kimball Electronics (public) divests AT&M business to Averna Technologies (Canada) July 2024
• Conextsmart (CO) acquired by Trexon (Audax) July 2024
• FoxtronicsEMS (Foxhole Group) acquired Accutron (MA) Sept 2024
• Jabil (public) acquired Mikro Technologies (liquid cooling technologies) Sept 2024
• Altek Electronics (CT) acquired by Cyient DLM Ltd. (India, Public) Sept 2024
• Cable Connection (CA, wire harness) acquired by BizLink Holding (Taiwan, public) Oct 2024
• Electronic Source Company (CA) acquired by Sverica Capital Management (PE) Oct 2024
• FTG (public Canada) acquired FLYHT Aerospace Solutions (Canada) Oct 2024
• Flextronics (public) acquired Crown Technical Systems (power distribution products) Nov 2024

On the PCB side, Bain Capital completed the acquisition of Somacis, an Italian PCB manufacturer which has operations in San Diego (formerly known as Hallmark Circuits). The other two deals were private and have not been publicly announced.  

For 2025, the number of deals in the PCB sector should increase as baby boomer owners want to retire, PE-backed companies have a drive to complete add-on deals, and the overall market improves over 2024. EMS deals should remain active in the 15–25 deal range due to a better market, PE activity, and overseas interest.   

One category of buyer that is not really new but has been increasingly active lately is the individual, small group, or ETA (Entrepreneurship Through Acquisition) buyer. Many business schools are teaching the merits of buying a business instead of working for a large, anonymous company, and the U.S. Small Business Association is helping out with small loans for acquisitions. This trend is providing a lot of liquidity for owners of smaller EMS and PCB shops.

 Owners who are thinking of selling should be sure to start preparing, as you never know when the right buyer will come knocking at your door.

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.