PENANG, MALAYSIA -- Emerging trends in global markets and product requirements have prompted electronics manufacturing services provider Escatec to acquire 100% of UK-based JJS Manufacturing in a private deal.

The acquisition adds electromechanical production facilities in the United Kingdom and Czech Republic to Escatec's predominantly Southeast Asia manufacturing locations.

The move permits Swiss-owned Escatec, headquartered in the Bayan Lepas on Penang island, to cater to OEMs requiring products to be manufactured or assembled in the UK or Central Europe, the company said in announcing the deal.

Escatec has annual revenues of more than $200 million, and the acquisition of JJS and an expansion of its Malaysian operations is expected to push yearly revenues to above $300 million.

Escatec's production capacity in Europe includes a design/development and production facility in Heerbrugg, Switzerland. JJS Manufacturing, with modern factories and a highly competent workforce, will dramatically and immediately expand the scope of ESCATEC’s offerings.

“This acquisition is a direct outcome of our strategic plan to grow Escatec into a major player in the global EMS industry and further demonstrates our commitment to serve our customers’ needs," said Patrick Macdonald, CEO, Escatec.

Escatec was established in 1974 and offers a complete range of electronics and box-build manufacturing services. It has two production facilities on Penang island, near the Malaysia-Thailand borde, and two more in Johor Bahru, near the Singapore border. The total plant size exceeds 40,000 sq. m. (430,000 sq. ft.).

The acquisition of JJS Manufacturing will add 14,000 sq. m. (150,000 sq. ft.) of production space with a headcount of 500 skilled employees in the UK and Czech Republic. It has annual revenue of $70 million and was founded in 1983.

“It’s an excellent fit between Escatec and JJS Manufacturing, and there’s a lot of synergy in the abilities and experience of both companies facilitating tremendous opportunities for cross-selling,” says Macdonald, adding that over the coming months Escatec will actively seek to drive additional business to its newly acquired assets.

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