Amphenol has made a binding offer to Bain Capital for FCI Asia, which will be the company’s second acquisition this year.
Amphenol Corporation has made a binding offer to of $1.275 billion to Bain Capital for Singapore-based FCI Asia Pte. Ltd. The acquisition, which will be financed with cash and debt, is expected to close by the end of 2015.
FCI Asia’s 2015 sales are expected to be approximately $600 million with an adjusted EDBITDA margin of 20%. FCI, which supplies connectors for the telecom/datacom and industrial market, employs about 7,400 people worldwide.
This is the second company Amphenol has acquired in 2015. In the first quarter, Amphenol completed the acquisition of Invotec Circuits Limited, a UK-based, $35 million manufacturer of highly engineered, harsh-environment printed circuit boards, flex circuits, and related assemblies for the aerospace, defense, and industrial markets.
In 2014, Amphenol’s acquisitions included:
- Goldstar Electric System, a $40 million China-based manufacturer of high technology interconnect assemblies for the industrial heavy equipment industry
- Casco Automotive Group, a supplier of engineered data connectivity, power, charging, and sensor products (at an acquisition price of $449 million)
According to Bishop & Associates, Amphenol has an impressive acquisition program that has resulted in a couple of dozen acquisitions over the past decade. These acquisitions have contributed significantly to the company’s growth and profitability. When FCI’s sales are added, Amphenol’s share of the world connector market will go from approximately 9.4% to 10.6%.
Over the last 20 years, the connector industry has been consolidating with the larger companies as buyers, which has significantly altered the industry landscape. For example, in 1995, 43% of world connector sales were generated by the 10 largest connector companies. In 2014, more than 60% of world sales were from the top 10 companies. Almost all of the top 10 market share gain came from acquisitions.
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