MP Corporate Finance acted as the exclusive financial advisor to the ebm-papst Group in the sale of the IKOR Group to Connect Group
Founded in 1981 and headquartered in San Sebastian, Spain, IKOR has grown into an established EMS group. With three strategically located production sites in Spain, China and Mexico the group offers end-to-end EMS value chain services, ranging from new product development through an in-house R&D centre, PCBA and box build assembly. IKOR’s smart and efficient setup has enabled it to build a rich and long-standing customer base, serving leading players within the industrial, automotive and medical sectors.
Evolving from a family owned and managed company to a 100% subsidiary of the ebm-papst Group as of 2019, IKOR went through an operational transformation steered by a newly appointed management team. This move set the stage for divesting the non-core subsidiary by the ebm-papst Group.
MP Corporate Finance was exclusively mandated by the ebm-papst Group to conduct the structured sell-side process in order to find a new home for IKOR.
Connect Group, a Belgian EMS player was looking to expand their geographic presence and realized that by acquiring IKOR they would become a global EMS player overnight with significant production exposure outside of Europe. Furthermore, the procurement and operational synergies along with access to a growing customer portfolio will prove to be valuable in enhancing performance in the near-term.
MP Value Add
Through in-depth EMS sector knowledge and a deep understanding of the industry’s value drivers, MP’s transaction team was able to suitably position the IKOR Group as an attractive case.
By handling several selected parties in a competitive and structured process in parallel, MP managed to maintain momentum and navigate the process through turbulent times caused by the global pandemic. Several creative solutions were developed to combat the constraints set by the pandemic, in order to continuously drive the deal forward. In the end a strategically fitting partner and new home was found for the IKOR group, thereby accomplishing the divestment objective of the ebm-papst Group.