Instem Technologies aquired by AWS Group
News Posted 1st March 2008
AWS Electronics Group has acquired Instem Technologies Ltd in a deal that positions them 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 said "This is great news for AWS and for our customers. As a group with annual sales now in excess of £40m 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 4 UK sites and one in Slovakia:
- AWS Electronics - Newcastle Under Lyme (NuL)
- Cemgraft - Newbury
- Jantec - Bedford
- Instem Technologies - Stone, Staffordshire
- AWS Slovakia.
The close proximity of the Instem site at Stone to AWS NuL (some 8 miles) means that AWS now dominates electronic manufacturing in the North West. Instem have specialised in high complexity box - build assembly and have customers in a wide range of industry sectors including mining, scientific and medical.
Deehan added that the attraction of Instem was a customer base that compliments 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. We plan 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 concluded that all Instem and AWS stakeholders including employees, customers and suppliers should see this as positive. We are reversing the trend for electronic manufacturing downsizing 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 LLP and lawyers Cobbetts. David Tucker at Jasper Corporate Finance, who is also a non-executive 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.
The group offers single source manufacturing for the most demanding and technically sophisticated electronic products, with the added benefit of lower cost offshore manufacturing where appropriate.
Serving a wide range of markets and industry sectors such as Aerospace, Defence, Communications, Security and Surveillance, Advanced Technologies, Marine, Medical, Rail, Food and Emergency Services, many customers who trust AWS to deliver are instantly recognisable, both at home and internationally.