Pioneering Venture With Paul Deehan: Revolutionising The EMS/CEMS Landscape

Unlocking Success Through Strategic Collaboration

In a testament to the power of collaboration, we were retained by Paul Deehan, leveraging a longstanding relationship, to embark on an exclusive journey focused on a robust buy & build strategy within the Electronic Manufacturing Services (EMS)/Contract EMS sector.

Strategic Sector Exploration

Diving deep into the EMS/CEMS sector, we meticulously identified potential platform businesses. The culmination of this endeavour was the selection of AWS through a discreet off-market transaction.

AWS Business Insight

AWS, a CEMS business primarily owned by an individual, stood as the focal point of this transformative strategy.

Nestled in Stoke, AWS boasted a turnover of £10 million from a clientele primarily consisting of 8 customers, with a notable emphasis on defence.

Strategic Buy & Build

In the 22 months after acquiring AWS, we spearheaded a strategic series of four bolt-on acquisitions:

Jantec: a specialist in lifetime asset management with expertise in reverse engineering.

Cemgraft: a CEM business based in Newbury, broadened the group’s customer base and enhanced the product portfolio.

Electroconnect Slovakia: strategically secured contracts and introduced a low-cost manufacturing facility based in Slovakia into the group.

Instem Technologies: Staffordshire-based CEM business contributed operational efficiencies and an enriched product portfolio.

Investment in People, Systems & Processes

Our commitment always extends beyond acquisitions. Substantial investments were made in people, systems and processes.

People: key senior appointments were made, fortifying the team with an FD, Purchasing Director, and Group Business Improvement Director.

Systems: significant financial injections were directed towards a group-wide ERP, custom manufacturing software development, facility upgrades in the UK, and the consolidation of Instem operations into the AWS site.

Processes: achievements included ISO9001 & 14001 certifications, aerospace accreditation, and the implementation of a group-wide lean manufacturing process.

Exit Strategy and Remarkable Returns

The journey reached a milestone in 2009 as AWS had a £35m turnover and 3 sites across the UK and Slovakia. Both Paul Deehan and Tateng sold c.50% of their equity, with Barclays Ventures acquiring a 47% stake in. This strategic move resulted in a 47.9x money return to Tateng in a mere four-year period.