A West Lothian company has been acquired in a deal that creates one of the UK’s largest electronics contracts manufacturers with a combined turnover of more than £50m.
The acquisition of Livingston-based CB Technology by Elite Electronic Systems of Northern Ireland, represents a 2.85 times return for investors who backed the firm through Maven Capital Partners which will exit on completion. Full terms were not disclosed.
It comes ten years after Maven backed a buy-in management buyout (BIMBO) of CBT following the retirement of the company’s founders.
As part of the original transaction, Maven assembled a new executive management team led by CEO John Cameron and CFO Graham Scott who continue to lead the business today, supported by group chairman Laurence Ormerod who will be retiring upon completion.
During Maven’s tenure, CBT invested significantly in its workforce, which has more than doubled, while investment in production technology, including automated capabilities allowed the company to increase production capacity and expand into new markets that require high-performance and reliable electronics.
Since the buy-in, CBT has quadrupled its revenues and has established itself as a partner within the contract electronics sector, serving global original wquipment manufacturers (OEMs) and top tier firms across a variety of industries.
The acquisition by Elite enhances the combined group’s service capacity and capabilities while adding critical mass. As part of the transaction CBT will continue to operate from its headquarters in Livingston, with the enlarged group having access to new market, expanded resources and enhanced capabilities.
HNH Group and Burness Paull advised on the deal.
Mr Cameron said: “We are extremely excited about the future potential and opportunities this will create for CBT’s employees and customers.
“The journey to get to this point has been immensely rewarding and could not have been achieved without the support and insight of Maven. Their team have been an integral part of the successful growth and development of the company over the last 10 years, and I would like to take this opportunity to extend our thanks to them for their unwavering support.”
Alan Robertson, partner at Maven, said: “The transformation of CBT from what was essentially a lifestyle business to becoming Scotland’s largest independent electronics contract manufacturer has been incredibly rewarding to be a part of.
“John and Graham have done an exceptional job of professionalising the business and implementing a clear strategic plan that has consistently driven revenue growth.
“We are proud to have supported CBT’s growth over the past decade and are delighted to see it combine with Elite to become one of the largest ECM’s in the UK, while continuing to support its existing and growing customer base from Livingston.”
Jonathan Balfour, CEO of Elite Electronic Systems, commented: “This acquisition is a pivotal step for Elite as we continue to grow and innovate in the EMS industry.
“The addition of CB Technology’s specialised expertise and strong market presence will allow us to deliver even greater value to our customers. We are excited to welcome the CB team to the Elite family and look forward to achieving new heights together.”
