EC Electronics Group, a UK-based electronics manufacturing services provider, has acquired Liad Electronics, a Dutch company that specializes in printed circuit board assembly. The deal, which was supported by Shawbrook Bank and Rockpool Investments, will give EC Electronics a greater presence and capacity in mainland Europe.
EC Electronics announced the acquisition of Liad Electronics on January 29, 2024, as part of its strategic expansion plan in Europe. Liad Electronics, which was founded in 1987, offers high-quality printed circuit board assembly services to a wide range of high-tech customers with complex electronics manufacturing requirements.
The acquisition will provide EC Electronics with a new manufacturing site in Breda, Netherlands, which will complement its existing facilities in the UK, Romania, and Hong Kong. The acquisition will also enhance EC Electronics’ customer base, product portfolio, and market reach, especially in the medical, industrial, and aerospace and defense sectors.
The acquisition, which follows Rockpool’s initial investment in EC Electronics in September 2022, marks the group’s second major acquisition in Europe. The group previously acquired DCA Design International, a UK-based product design and engineering consultancy, in November 2022.
How did the leaders and stakeholders of the companies react to the acquisition?
The leaders and stakeholders of both EC Electronics and Liad Electronics expressed their excitement and optimism about the acquisition, as they praised each other’s capabilities and expertise, and looked forward to working together.
Some of the comments and statements from the leaders and stakeholders are:
- Phil Simmonds, CEO of EC Electronics, said: “We are very excited about Liad Electronics joining the EC Group and working with the incredibly experienced team there. Liad will now be the foundation for the next stage of our growth plans in mainland Europe and a key part of the future success of the group.”
- Rick Meesters, Managing Director of Liad Electronics, said: “I am looking forward to collaborating with the EC Group and Rockpool. The additional services offered by EC will allow us to significantly improve our position and provide extra support to existing relationships.”
- Guy Ellis, Director at Rockpool Investments, said: “We are delighted to support EC Electronics in its acquisition of Liad Electronics, which is a testament to the group’s ambition and vision. We believe that the combination of EC and Liad will create a strong and differentiated player in the electronics manufacturing services market, with a focus on quality, innovation, and customer satisfaction.”
- Paul Deighton, Relationship Director at Shawbrook Bank, said: “We are pleased to provide the funding for EC Electronics’ acquisition of Liad Electronics, which is a strategic and complementary addition to the group. We have been impressed by the performance and growth of EC Electronics, and we look forward to continuing our partnership with the group and Rockpool.”
What are the prospects and challenges for EC Electronics and Liad Electronics?
EC Electronics and Liad Electronics face both prospects and challenges in their business, as they operate in a competitive and dynamic electronics manufacturing services market. Some of the prospects and challenges are:
- The opportunities for growth and diversification, as the companies can leverage their combined skills and resources, and explore new markets and segments, such as smart cities, renewable energy, and internet of things.
- The benefits of scale and efficiency, as the companies can optimize their operations and supply chain, and reduce their costs and risks, by sharing their best practices and synergies.
- The competition from the other players, both domestic and international, who are also vying for a share of the electronics manufacturing services market, which is expected to grow at a compound annual growth rate of 8.5% from 2020 to 2027.
- The impact of the external factors, such as the covid-19 pandemic, the geopolitical tensions, and the regulatory changes, which may affect the demand and supply of the electronics products and services, as well as the profitability and sustainability of the companies.