GRAND RAPIDS, MI – Lacroix has signed an exclusive agreement for the acquisition of a majority stake in Firstronic.

The group first acquired a stake in 2017, which it then increased to 12.5%. Lacroix will rise its equity stake in Firstronic to 62% at the end of this operation.

Subject to customary conditions, the deal will be conducted with co-investment from Bpifrance, which will take a 26% stake in the electronics manufacturer.

John Sammut will remain CEO of Firstronic and will retain 4% of share capital in it, while Jochen Lipp, COO, will take an equity stake in Firstronic of 3%.

Firstronic serves tier-one customers primarily in the automotive, industry and healthcare sectors in North America. The company relies on production sites in Michigan and Mexico and has a staff of some 1,300.

“We have had a stake in Firstronic for almost four years now, during which time we have been able to observe the commitment and know-how of Firstronic’s teams and the strong potential synergies between our respective entities,” said Vincent Bedouin, CEO, Lacroix. “Together with keeping in place a highly experienced management team, which has been able to grow the business at a rapid pace, these elements convinced us that a combination would be mutually beneficial and incorporating Firstronic largely facilitated. Proud of the opportunities afforded by a first acquisition such as this on US soil that is as structural as it is historic, we look forward to welcoming Firstronic’s teams within the group, and with them creating a global leader in industrial IoT solutions and electronic devices for critical applications.”

In 2020, Firstronic posted revenue of $87 million, almost 20% of Lacroix’s revenue. Strong growth is expected across both indicators for the 2021 financial year, with a trajectory of $140 million in revenue and EBITDA above 9%. The deal should immediately prove accretive within the upcoming financial year.

“We couldn’t be happier with this agreement,” said Sammut. “We are very familiar with Lacroix teams, and Lacroix and Firstronic are joining forces to create a global leader in EMS, which makes perfect sense from both an industrial and financial point of view. I am excited for us to start working together to grasp the excellent growth opportunities that lie ahead.”

Lacroix plans additional international acquisitions in the future.