Contract electronics manufacturer CB Technology of Livingston has been acquired by Northern Irish rival Elite Electronic Systems for an undisclosed sum.
The combined business will have an annual turnover of more than £50 million, creating one of the largest such operators in the UK. The deal is expected to be the first in a series under Elite's "buy-and-build" strategy backed by its main shareholder, private equity group Lonsdale Capital Partners.
Founded in 1999, CB Technology employs 80 people providing electronics capable of operating in the harshest environments of extreme pressure and temperature. Customers of the company, which generated revenues of £16m in the year to March 2023, include clients spanning the energy, industrial, medical, communications and instrumentation sectors.
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The business is being sold by its majority shareholder, Maven Capital Partners, which initially backed a buy-in management buyout of CB Technology in 2014. As part of the original transaction, Maven assembled a new management team led by chief executive John Cameron and chief financial officer Graham Scott, who will continue to run the Scottish operation and will take senior roles within the combined business.
“We are proud of what we have achieved at CB Technology and are excited to join forces with Elite, a company that shares our vision and values," Mr Cameron said. "Together, we will be able to offer enhanced solutions to our customers and create new opportunities for our employees.”
CB Technology will continue to operate from its headquarters in Livingston. No decision has yet been made about whether the business will be re-branded as Elite in the medium-term.
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Glasgow-based Maven, which has been part of UK wealth management group Mattioli Woods since 2021, said the deal has generated a total return of 2.85x for its investors. Since the buy-in prompted by the retirement of the company's founders, CB Technology is said to have quadrupled its turnover.
Alan Robertson, partner at Maven said the firm was proud to have supported this growth.
"The transformation of CBT from what was essentially a lifestyle business to becoming Scotland’s largest independent electronics contract manufacturer has been incredibly rewarding to be a part of," he said. "John and Graham have done an exceptional job of professionalising the business and implementing a clear strategic plan that has consistently driven revenue growth."
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