EMS Industry M&A Transactions Up in 3Q

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There were 10 completed M&A transactions in the EMS industry in the third quarter of 2015, according to the latest EMS DealReader report by Lincoln International. The 10 transactions represent an increase in recent M&A activity compared to the six transactions in the previous quarter. On a comparative basis, this is up from the seven transactions reported in Q3 2014.

These transactions include Flex's acquisition of Mirror Controls International; Jabil's acquisition of Kasalis Inc.; Euro Process' acquisition of Sofinelec; IEE S.A's acquisition of ALL Circuits S.A.S.; and PKC Group Oyj's acquisition of the Wiring and Controls Business of Groclin S.A. Group.

Vertical/horizontal convergences were up from last quarter, representing five transactions in Q3 2015 compared to zero in Q2 2015. On a comparative basis, this is up from the zero vertical/horizontal convergences reported in Q3 2014. There were four EMS consolidations in Q3 2015, down from six in Q2 2015, and also down on a comparative basis from the six reported in Q3 2014. Additionally, there was one transaction categorized as a diversification into EMS in Q3 2015. No transactions categorized as OEM divestitures or private equity investments occurred in Q3 2015.

Six of these M&A transactions occurred within Europe in Q3 2015 (60% of total transactions), up from three transactions in the previous quarter. On a comparative basis, transactions that occurred within Europe represented only 43% of the total transactions in the same quarter last year. Two transactions occurred in the U.S. and Canada (20% of total transactions) in Q3 2015, down from three in the previous quarter. There were also two cross-border transactions in Q3 2015, up from zero in the previous quarter. There were no transactions in Asia this quarter.