Industrial Electronics

U.S.-Based EMS Probe Acquires Competitor

27 March 2013

The US electronics manufacturing services (EMS) industry consolidated a bit this week with the acquisition of Utah-based Trident Manufacturing Inc. by Irvine, Calif.-based Probe Manufacturing Inc. (PMI). Trident had revenue of approximately $3 million in 2012.

Probe’s management sees the acquisition as a way to compete with offshore manufacturing. "This acquisition meets several of our long- and short-term strategic objectives, which ultimately reinforce our strategy of providing a low-cost, scalable model for small to mid-sized OEMs that allows them to manufacture right here in the US and avoid the myriad of problems and costs now being experienced with offshoring," said Kam Mahdi, president and CEO of PMI.

PMI’s management expects the transaction to be accretive to Probe's 2013 earnings and believes that the revenue opportunities, cost synergies and scalability that can be realized from the acquisition should accelerate PMI’s growth. This acquisition expands PMI’s presence in lower cost regions of the US and provides an additional 16,000 sq. ft. of manufacturing capacity. Both Probe and Trident specialize in the industrial, aerospace, military, instrumentation and medical markets.

To contact the author of this article, email GlobalSpecEditors@globalspec.com


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