CHICAGO – The rebound in orders in the EMS sector has brought with it an uptick in M&A activity.

A total of 10 deals were completed in the second quarter, up from six a year ago, says Lincoln International.

The volume brings the number of transactions completed this year to 21.

“Economic conditions appear to have stabilized, which has created an opportunity for companies to pursue strategic investments within the EMS sector,” Lincoln said.

Per Lincoln, which advises companies on mergers, there were six consolidations, one OEM divestiture, one EMS divestiture and three private equity investments. The biggest deal was Sanmina-SCI’s acquisition of fellow contract electronics assembly Breconridge. The number of consolidations tracks with several studies that observed more companies close after a recession than during it.

There were no vertical or horizontal convergences; a year ago, there were seven. Four of the deals took place in North America, four in Europe, one in Asia and one “cross-border.” Nine of the deals were companies with annual sales under $150 million.

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