Escatec, an electronics manufacturing services (EMS) provider has bought UK-based JJS Manufacturing in a private deal. The acquisition adds electro-mechanical production facilities in the UK and Czech Republic to Escatec’s portfolio of hi-tech and highly competitive manufacturing locations.

The deal will enable Swiss-owned Escatec, headquartered in the global electronics cluster of Bayan Lepas on Penang island, Malaysia, to cater to OEM brands requiring products to be manufactured or assembled in the UK or Central Europe, while also enhancing the Group’s capabilities and expertise especially for electro-mechanical manufacturing.

Escatec’s production capacity in Europe has previously been centered on a design and development at an advanced production facility in Heerbrugg, Switzerland. The addition of JJS Manufacturing, with modern factories and a highly competent workforce, will dramatically and immediately expand the scope of Escatec’s offerings.

Escatec CEO Patrick Macdonald, said: “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. I am delighted to welcome everyone at JJS Manufacturing to the Escatec family at this very exciting time.”

Established in 1974, Escatec offers a complete range of electronics and box build manufacturing services – from design and development and certification to mass production and after-sales service – to a global customer base.

The Group operates two production facilities on Penang island (near the Malaysia-Thailand border) with two further facilities in Johor Bahru, Malaysia (minutes from the Malaysia-Singapore border), while Escatec Switzerland AG in Heerbrugg is situated very close to the Austrian border. Production space in these facilities amount to more than 40,000m².

With Group revenue exceeding US$200 million, the acquisition of JJS Manufacturing together with ongoing expansion of its Malaysian operations is expected to rapidly propel Esecatec’s annual revenues beyond the US$300 million mark.

Escatec’s customer base includes numerous major OEM brands, many of them from the UK and Europe, and Macdonald says that business development initiatives will remain focused on its traditional key markets of the UK, Europe, and North America.

The acquisition of JJS Manufacturing will add 14,000m² of production space with a headcount of 500 skilled people in the UK and the Czech Republic.

JJS Manufacturing’s production facility in Lutterworth, established in 1983 with reported revenues of around US$70 million in 2020, JJS Manufacturing has an exceptionally strong industry reputation in supplying complex, highly configurable, low-to-medium volume, electro-mechanical assemblies.

These assemblies demand high levels of skill, precision, accuracy and consistency, attributes which JJS Manufacturing has ample demonstrable experience. Key market segments include industrial automation, process control, test and measurement, and the scientific fields.

Mr Macdonald continued: “It is an excellent fit between Escatec and JJS Manufacturing, and there is a lot of synergy in the abilities and experience of both companies facilitating tremendous opportunities for cross-selling.”

He added that over the coming months Escatec will actively seek to drive additional business to its newly acquired assets.

Stephen Greaves, JJS Manufacturing managing director added that Escatec brings very strong financial backing for JJS Manufacturing and long-term stability for its employees, besides providing access to its established expertise in high-complexity electronics PCBA and box-build manufacturing and to its international business development network.

Mr Macdonald concluded: “This is a win-win for everybody, certainly that is the case for OEM brands in the UK and Europe that need a highly experienced and exceptionally trustworthy manufacturing partner with ample production capacity closer to home.”