USI intends to acquire 100 percent equity of Asteelflash for 450 million US dollars.
USI intends to acquire 100 percent equity of Asteelflash for 450 million US dollars.
( Source: USI)

USI to acquire Asteelflash, Europe's Second-Largest EMS Company

| Author / Editor: Erika Granath / Erika Granath

To accelerate its global expansion, the Shanghai-based electronics manufacturing services (EMS) company Universal Scientific Industrial (USI) intends to acquire French Asteelflash, the second-largest EMS company in Europe.

Founded in 1976, USI offers customer diversified products in the sectors of wireless communication, computer and storage, consumer, industrial, and automotive electronics. In 2018, the company was ranked the 8th largest EMS company worldwide. Now, it's looking to harden its grip on the electronics manufacturing market.

USI to acquire Asteelflash for 150 million USD

With only a few days left of the 2010s, USI announced on December 12, 2019, that it had signed a "Share Purchase Agreement" with shareholders of French Asteelflash, looking to acquire 100 percent of the company's equity for about 450 million US dollars. The transaction is subject to approval by the relevant authorities.

Asteelflash serves segments such as automotive, energy management, the Internet of Things (IoT), industrial, and data processing. The company is currently Europe's second-largest EMS company, after German Zollner. With a recorded revenue of around US$1 billion in 2018, Asteelflash was ranking 20th (MMI, 2019.04) in the global EMS industry.

Asteelflash' existing operating team will stay unchanged

Asteelflash will become a subsidiary of USI from a privately held company as soon as the acquisition is completed. USI will maintain Asteelflash's existing operating team.

Asteelflash CEO Gilles Benhamou said that USI has a solid foundation and experience in manufacturing, design, and automation, and has excellent value for the company's development and continuous improvement. Meanwhile, leveraging global scale of operation and manufacturing, branding, and service capabilities of USI, Asteelflash aims to capture more opportunities to increase big orders of major clients and accelerate its business growth and expansion.

Asteelflash to optimize USI's current customer base

With revenues of around US$ 1 billion, Asteelflash serves more than 200 clients. Following the acquisition, it will help to optimize USI's existing customer base and further balance client distribution and revenue composition.

In the future, USI and Asteelflash expect to target a much more extensive range of clients. With joint forces, they'll be able to serve customers at different stages of product development, such as quick-turn manufacturing and design feedbacks in the early stage of product development for small volume, or rigid requirements for mature products at the mass production stage in terms of production stability and lead time.