Acquisition creates new force in UK EMS

The acquisition of Instem Technologies positions AWS Electronics Group as the largest UK independent electronics manufacturing services provider.

AWS Electronics Group has acquired Instem Technologies in a deal that positions the company as the largest UK independent electronics manufacturing services (EMS) provider.

Both companies provide specialist manufacturing services to high profile customers in a range of high value, high technology markets where technical collaboration, quality and on time delivery are key drivers.

AWS Group Chief Executive Paul Deehan says: "This is great news for AWS and for our customers".

"As a group with annual sales now in excess of GBP 40 million, we have further increased our capability and breadth of services".

"The acquisition is strategic, as it allows us to provide flexibility and capacity for the sales growth being created within both businesses".

The AWS Group now comprises four UK sites and one in Slovakia: AWS Electronics - Newcastle Under Lyme; Cemgraft - Newbury; Jantec - Bedford; Instem Technologies - Stone, Staffordshire; and AWS Slovakia.

The close proximity of the Instem site at Stone to AWS Newcastle Under Lyme (some 14km) means that AWS now dominates electronics manufacturing in the North West.

Instem has specialised in high-complexity box-build assembly and has customers in a wide range of industry sectors including mining, scientific and medical.

Deehan says the attraction of Instem was a customer base that complements AWS' existing clients and also additional capacity.

He predicts that with the AWS growth forecasts and current order book he needs the extra capacity that Instem brings both in terms of people skills and facility.

Both sites will be at increased capacity in the coming months.

The company plans to develop a senior management team to manage both sites as one entity so we can get the benefits of flexibility and reduced overhead costs that this brings.

Deehan concludes that all Instem and AWS stakeholders including employees, customers and suppliers should see this as positive.

"We are reversing the trend for electronic manufacturing downsising that is prevalent in the UK and specifically in the North West, our markets and customers are special, requiring high levels of technical collaboration and skill".

Advice on the acquisition was provided by teams from Birmingham-based Jasper Corporate Finance and lawyer Cobbetts.

David Tucker at Jasper Corporate Finance, who is also a nonexecutive director at AWS, points out that "the deal highlights that AWS has clear market strategy to obtain work in the high value segments of the electronic market and that this is clearly working".

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