2025 was a busy M&A year among European EMS companies. Seven listed companies announced 14 acquisitions, out of which 11 were completed in 2025. Out of the remaining three, one deal was cancelled and two will be completed early 2026.
| Acquiring Company | Target Company | Est. Revenue | Valuation | Status |
|---|---|---|---|---|
| Cicor | TT Electronics | 625M€ | 6.5x | Offer rejected |
| Cicor | Eolane | 134M€ | N/A (distressed) | Closed Apr 2025 |
| Cicor | Valtronic (2 sites) | 21.5M€ | N/A | Closed Nov 2025 |
| Cicor | Mades | 29M€ | N/A | Closed Aug 2025 |
| Hanza | Leden Group | 100M€ | 7x (EBITA) | Closed Mar 2025 |
| Hanza | Milectria | 30M€ | 4.9x | Closed Oct 2025 |
| Hanza | BMK Group | 300M€ | 8x (10x-12x EV/EBIT) | Closed Jan 2026 |
| Scanfil | ADCO | 32M€ | 5.4x | Closed Dec 2025 |
| Scanfil | MB Elettronica | 100M€ | 10.2x (midpoint) | Pending (Jan 2026) |
| Kitron | Delta Nordic | 74M€ | 9.65x | Closed Jan 2026 |
| NOTE EMS | Kasdon Group | 14M€ | 6x | Closed Oct 2025 |
| Inission | UAB Selteka | 16M€ | 5.5x-8x | Closed July 2025 |
| Inission | Celtica | 5M€ | 5x-7x | Closed July 2025 |
| Incap | Lacon Group | 68M€ | 7x-8x | Pending (1Q2026) |
The Race for Scale
In October, Hanza boldly declared they will become the largest European listed EMS, following the announcement of acquiring BMK, a ~€300 million German EMS company. The combined revenue of Hanza, BMK and other earlier acquired companies Leden Group and Milectria would grow to be very close to €1B in 2026, according to analysts’ estimates.
Few months earlier, Scanfil had announced two deals with ADCO and MB Elettronica. The expected revenue range according to analysts would be €950M – €1050M in 2026. Expected revenues being so close, Hanza’s announcement appears to be backed by a significant degree of strategic confidence.
Just two weeks after the Hanza announcement, Cicor doubled down. They announced a public offer to acquire the shares of UK based listed EMS company TT Electronics. That deal, if closed, would make Cicor clearly the number one with €1.3 – €1.4B revenue. However, in early January 2026, TT shareholders declined the offer. It will be interesting to see what will be the next move by the Swiss EMS company who has been the most active player in the EMS M&A game recently.
A contender that cannot be overlooked in this race is Kitron. They announced 2026 guidance of €855M – €943M in December. Kitron’s growth into 2026 is driven by the booming defense market and the acquisition of Delta Nordic that Kitron announced in November. Their projections are indicating breaking the €1B milestone in 2027. With the strongest organic growth rate and healthy balance sheet, they are expected to be closing in on Hanza and Scanfil.
2026 Revenue estimates for top European listed EMS companies
Strategic Drivers: Why Defense is Dominating the Boardroom
Becoming the “largest listed” is not a key driver behind the announced acquisitions, except perhaps for Hanza who has made some headlines out of it. Top line growth alone should not be a rationale. In my previous article I discussed the interplay between growth and profitability.
The biggest driver, mentioned in eight announcements, is growth in Defense & Aerospace. This is not surprising given the high growth expectations in defense spend over the years to come. Defense attractiveness is not about growth alone, but also about “moats”. Defense customers are difficult (and slow!) to win but offer long-term business opportunities for the qualified companies.
Other typical drivers mentioned are “strengthening foothold in market X” and “diversifying the customer base”. Some companies also mention “strengthening their capabilities in ODM” (Incap-Lacon) or “…expertise, capacity and leadership” (Hanza-BMK).
Valuation Trends: Does Size Always Command a Premium?
Valuations turn out to be diverse, ranging between ~5x…~10x EBITDA. The chart below reveals a clear valuation premium for targets like MB Elettronica and Delta Nordic. Analysts are attributing this to a good strategic fit and exposure to high potential defense business.
Another observation is that at the lower end of the deal size, the valuations seem to be generally lower. This might be associated with lower scarcity-premium, lower strategic importance for the acquiring company, and/or general negotiation dynamics.
Correlation: Revenue vs. Valuation for European EMS M&A (2025-2026)
Bubbling Under: Beyond the Public Markets
Among other European EMS companies, the M&A activity seemed less vibrant. Asteelflash and Lacroix are focusing on their internal transformation challenges, however in opposite geographical directions. Asteelflash is restructuring their European operations and expanding in Mexico. Lacroix, on the other hand, is withdrawing from its loss-making US operation and refocusing on the EMEA region.
Zollner acquired full ownership of their Bluechips Microhouse JV in Thailand to strengthen their Asian footprint. Other Zollner moves include expansion investments in their Thai and Hungarian operations.
GPV made a minor move by announcing a partnership with a small US EMS company East/West Manufacturing Enterprises (EWME). This can be interpreted as a quick reactive move mitigating the US tariff risk and especially attractiveness to customers with business in the US. Further strategic moves are likely assuming GPV seeks to address the current gap in its US manufacturing footprint.
Looking Ahead: Three Strategic Questions for 2026
The 2025 proved to be one of the most transformative periods for the European EMS landscape. As the industry moves into 2026, the race is not just about who is the “biggest,” but who is able to continue improving profitability hand-in-hand with topline growth.
As you follow these companies in the coming year, here are my three key themes to look for:
1. The Digestive Phase: Measuring Integration Success
Scaling through M&A is only half the battle. The true test for in 2026 will be the ability to extract the expected profits from the new assets. Keep a close eye on one-time integration costs, P&L adjustments, and whether these acquisitions are truly accretive to the bottom line – or if they simply added complexity.
2. Cicor’s Next Move: A Hunger for More?
Despite the rejection of the TT Electronics bid, their “shopping spree” over the past two years signals a bold appetite for dominance. Will they attempt another large-scale “double down” in 2026, or continue with smaller acquisitions to fuel their growth?
3. The Fight for the Crown: Who Will Actually Be the Largest?
While Hanza’s “largest listed” declaration made headlines, the top three players, Scanfil, Hanza, and Kitron, are now within breathing distance of one another. With revenue projections tightly clustered between €850M and €1.050B, the title of “Listed Market Leader” in 2026 will be decided by a combination of organic growth performance and the next “game-changing” deal.
What are your top 3 to look for in 2026?
In case you want to engage in more details regarding European EMS business or industry advisory services, feel free to contact me at [email protected]
