June 27, 2014
Editor's Note 

In last month's newsletter I noted that it was very likely that we would see more IP&E manufacturers focused on high-performance product development to offset dwindling margins in their commodity businesses as well as more targeted acquisitions of niche companies that give them entry into higher end products or specific markets such as military/aerospace. Here it is one month later and there have been several more targeted acquisitions announced by IP&E component manufacturers and distributors.

 

I agree with my colleague and EPS managing editor Barbara Jorgensen who noted in a recent newsletter that the electronics industry isn't likely to see the merger and acquisition frenzy we saw in the 1990s, but there has been a spike in acquisitions that are much more strategic. Vishay Intertechnology is a perfect example. The electronic components giant recently purchased Holy Stone Polytech for $21 million to bolster its capacitor portfolio with Holy Stone's polymer tantalum capacitor technology. The handful of acquisitions made by Vishay over the past two years were all specialized component manufacturers, including MCB, Huntington Electric and HiRel Systems. The latest acquisition is part of Vishay's expansion strategy of acquiring strategic, niche passive component manufacturers that add to its high performance portfolio and expand its market share in existing product technologies.

 

Even distributors are expanding through targeted niche acquisitions. TTI recently announced the acquisition of Astrex Electronics, a specialist distributor in the military/aerospace connector market, while Sager announced the purchase of PowerGate, a power specialist distributor.

 

TE Connectivity also made a significant acquisition as part of its plans to boost sales via targeted acquisitions and expansion into fast-growing segments. The electronic components company recently agreed to purchase Measurement Specialties, a sensor specialist for $1.7 billion. In April, TE Connectivity agreed to buy specialist connector maker Seacon Group for $490 million, expanding its offerings in the military marine and general marine industry.

 

In addition to acquisitions to grow sales and boost profits, IP&E companies are making efforts to expand their portfolios into new product areas. One of those connector specialists is ERNI Electronics, which has expanded its product portfolio beyond telecom interconnects that once dominated its portfolio.

 

If you need help implementing a plan to stop counterfeit components from entering your supply chain, check out best practices shared by NKK Switches and Newark element14.

 

In case you haven't heard the news, Electronics Purchasing Strategies launched this month a new dedicated site catering to manufacturers, distributors and buyers of interconnect, passive and electromechanical components. The IP&E Marketplace provides news, research and data about what's happening in the IP&E market as well as showcases new products, technical information, videos, webinars and other services from suppliers and distributors. The marketplace is designed for buyers and sellers of IP&E components to collaborate and link up directly with each other.

 

If you have a story idea, let us know. Interested in a specific topic, please contact us. You can reach me at gina.roos@epsnewsonline.com.

 

Gina Roos

Executive editor

Electronics Purchasing Strategies

gina.roos@epsnewsonline.com 

 
Featured Articles 
Lytica

TE Bets on Sensors  

TE Connectivity Inc. said it has reached an agreement to purchase Measurement Specialties Inc. for $1.7 billion, bolstering its presence in the sensors market and as part of continuing plans at the company to boost sales and profit via targeted acquisitions and expansion into fast growing segments of the electronics industry. The acquisition represents a big bet for TE beyond its traditional connector business.  Continue reading

 

The New ERNI

Over the past several years, ERNI Electronics Inc. has made a focused effort to broaden its portfolio beyond telecom interconnect products that once dominated its product portfolio. This was largely driven by the telecom bust in the early 2000s, which resulted in the company's re-evaluation of its position in the market. The connector manufacturer has expanded its product portfolio to include general-purpose board-to-board and wire-to-board interconnect solutions. Continue reading

 

Vishay Strengthens Tantalum Capacitor Portfolio

Vishay Intertechnology, Inc. has purchased Holy Stone Polytech Co., Ltd., a manufacturer of tantalum capacitors, from Holy Stone Enterprise Co. Ltd. for $21 million. The acquisition gives Vishay entry into the polymer tantalum capacitor market. While Vishay has a polymer tantalum technology in development, the acquisition is said to augment its research & development in this area. Tantalum polymer capacitors offer a significantly better equivalent series resistance (ESR) compared to conventional tantalum capacitors. Continue reading

 
News 

Protecting Yourself from Counterfeit and Gray Market Components

As a manufacturer of switches, quality is one of the most crucial elements of our brand. It is also one of the elements that we can control. If the switch doesn't meet quality standards and tests that we expect from our manufacturing processes, it is discarded and destroyed. This focus on quality is what all manufacturers strive for. However, like all manufacturers, counterfeit parts can be a danger to quality control and end users. Continue reading

Five Tips for Combating Counterfeit Components

Counterfeit components are a $100 billion industry. Counterfeits are now estimated to comprise between five and 25 percent of all available parts. As the marketplace for engineers has become increasingly fast-moving and competitive, many purchasing professionals and distributors have cut corners to accommodate faster product turnaround schedules. This is has allowed gray market electronics to become increasingly lucrative. Continue reading 

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