Target Information

ING Corporate Investments and private equity firm OxGreenfield have acquired a portion of the shares of Bestronics, located in Veldhoven. Bestronics is a leading producer of high-tech electronics and specializes in testing and assembly for various electronic applications. The company's primary clientele is in the consumer electronics and automotive sectors, with a notable expansion towards medical applications. Bestronics operates from four locations in the Netherlands, as well as a procurement office in China.

The company sets itself apart in the market through its expertise in sector-specific processes, lean and mean process arrangements, and in-depth technical knowledge regarding complex supply chain scenarios. Over the past years, Bestronics has consistently demonstrated growth and identified buy-and-build opportunities, which motivated ING and OxGreenfield to invest in the company.

Industry Overview

The Netherlands is recognized as a significant player in the high-tech industry, characterized by a strong focus on innovation and technological advancement. The Dutch high-tech sector has seen continuous investments, bolstered by attractive government policies aiming to foster research and development. The industry encompasses various fields, including automotive engineering, consumer electronics, and medical technology, all of which have been growing steadily.

The consumer electronics segment, in particular, has been driven by increasing consumer demands for smarter and more efficient devices. This rapid evolution necessitates a strong supply chain management strategy, an area where companies like Bestronics excel due to their established expertise in handling complex logistics and manufacturing challenges.

Moreover, with the global shift towards sustainability and digital transformation, the automotive sector in the Netherlands is increasingly integrating high-tech solutions into their operations. As automakers pivot towards electric vehicles and advanced driver-assistance systems (ADAS), their reliance on specialized electronics and assembly capabilities is more critical than ever.

The expanding demand for the Internet of Things (IoT) and electrification within various industries including healthcare and manufacturing further complements the growth trajectory of high-tech electronics firms. With these trends, the outlook for players like Bestronics remains promising in the Dutch market.

Rationale Behind the Deal

The rationale for this investment stems from the combination of strong market positioning, potential for growth, and the ongoing demand in various sectors for high-tech electronic solutions. Bestronics has already demonstrated a successful track record of growth, driven by its expertise and unique capacity to deliver customer-centric solutions. The partnership with OxGreenfield not only provides capital but also enhances the strategic direction of the company, paving the way for further expansion and innovation.

Furthermore, the integration of Spinnov, a design and engineering firm, into Bestronics presents a significant opportunity to create a one-stop shop for clients. This acquisition aligns with the growing market demand for comprehensive solutions in product development, manufacturing, and assembly.

Investor Information

ING Corporate Investments is the investment arm of ING, a major Dutch multinational banking and financial services corporation. Known for its strategic approach to investments, ING focuses on sectors that demonstrate long-term growth potential and innovation. Through this deal, ING aims to leverage its financial expertise to drive sustainable growth at Bestronics.

OxGreenfield is a private equity firm specializing in investments across various high-tech and growth-oriented sectors. Their investment strategy emphasizes partnerships with companies that possess strong market positioning and growth opportunities. By collaborating with a firm like Bestronics, OxGreenfield aims to capitalize on the rising demand for high-tech electronics and enhance operational efficiencies.

View of Dealert

The acquisition of Bestronics by ING Corporate Investments and OxGreenfield appears to be a strategic and promising investment. Given the robust growth trajectory of the high-tech electronics sector in the Netherlands and Bestronics' established market presence, the deal positions both investors favorably for future returns. Bestronics has the potential to leverage its unique operational strengths to capture a larger market share.

Additionally, the synergy created through the integration of Spinnov could enhance Bestronics' service offerings, making it a more attractive partner for OEM clients and aiding in the diversification of its revenue streams. This strategic maneuver aims to optimize operational capabilities while fostering innovation.

Overall, the increasing need for advanced electronic solutions across multiple industries, including automotive and healthcare, provides a solid foundation for continued growth. The partnership between ING, OxGreenfield, and Bestronics can effectively capitalize on this momentum, potentially yielding strong returns on investment in the coming years.

However, the success of this investment will depend on the ability of the management team to execute their growth strategy efficiently. Continuous monitoring of market trends and customer demands will be crucial in maintaining a competitive edge in the rapidly evolving high-tech landscape.

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