Incaelec wired for growth by ECI acquisition
Livingstone’s Industrial sector team has advised the shareholders of Incaelec, SLU, a Spanish manufacturer of wiring and electromechanical systems for the home appliances and automotive markets, on the sale of the business to US-based Electrical Components International, Inc., a global leader in the manufacture and distribution of wire harnesses.
Based in Zaragoza, Incaelec was founded in 1980 and specialises in the design, development and manufacture of wiring, plastic components and electrical and mechanical systems for multi-national white goods manufacturers. Incaelec is also well positioned in the automotive market with a client porfolio including prominent Tier 2 manufacturers. The company’s capacity to deliver complex fully-assembled systems, and its “zero-failure” philosophy has positioned Incaelec as a market leader in Southern Europe. The company employs 200 and has facilities in Poland and Morocco.
Headquartered in St Louis, ECI is a major supplier of wire harnesses and cord sets to the global white goods industry. ECI currently has a 90% share of the US white goods market and an 11% share of the European major household appliances market. Also active in the automotive, agriculture, construction and transport markets, ECI has production plants in México, China, Canada and Poland and employs 11,700 people worldwide. In 2012, ECI has revenues of $574m.
John Gilbert, VP Corporate Development of ECI commented: “The Incaelec acquisition furthers our strategy of complementing our organic growth by acquiring great businesses with great leadership. Incaelec expands our geographic reach into Spain and Morocco, builds upon our world class customer base and expands our product offering as we look to accelerate our acquisition strategy in our key markets. Our efforts in this transaction were aided by the thoughtful and constructive approach of Livingstone.”
Eva Rodrigo, Director at Livingstone Madrid added: “This is the second sale transaction where the shareholders of Incaelec have turned to Livingstone for our expertise and support on an international deal. Incaelec represented a unique opportunity for an international group to gain important market share in Europe. ECI is a perfect fit, both from strategic and cultural aspects, and we are delighted to have worked with them and the seller to successfully conclude this complex transaction.”
The Incaelec sale follows on from Livingstone’s involvement in €40.8m debt restructuring of Mondragón Soluciones in 2009, and the subsequent sale in 2010 of the group’s railway division to Railtech Sufetra, the Spanish division of listed French group Delachaux.