Client Background & Objective
Assystem is an international Engineering and Innovations Consultancy with a presence in 20 countries and nearly 12,000 employees. 50 years of experience have made Assystem a key partner of the world's largest industrial groups: Airbus, Areva, Alstom, Peugeot, Renault, Rolls Royce, Safran and Thales to mention some. Designing and developing the products and services of tomorrow, building and ensuring the optimum use of their investments throughout the life cycle, coordinating and executing the realization of their projects and infrastructure: Assystem's engineering teams make the difference and instil trust.
Assystem’s business unit Global Product Solutions (“GPS”) has a long history with AB Volvo, especially Volvo Trucks. GPS wanted to deepen this relationship and hence becoming a key supplier to AB Volvo. GPS also had identified Sweden as a profitable market in a dynamic industrial zone. Several other French firms was also already present in Sweden, e.g. Altran, Alten and Segula.
IMAP Advantage & Approach
The Nordic market for engineering companies is fragmented among small specialized companies and large companies with a wide scope of services. Mergers and acquisitions are also accelerating with several Nordic players being very active. In Sweden, the city of Gothenburg is the main hub for many industrial companies, Volvo being one of them. Since IMAP has a strong presence in Gothenburg we were contacted by Assystem.
An initial analyse of the market and of the 40 largest companies active on the market were conducted. Out of these companies ten were selected based on several criteria such as turnover, activities, industries served and customers. The potential targets were approached and many of the targets turned out to be based in Gothenburg, as anticipated.
Outcome & Impact
After several meetings and discussions Assystem found the perfect entry to Sweden when they acquired 100% of the shares of Engineering Partner Automotive Nordic AB ("Engineering Partner") a company based in Gothenburg, Sweden. Engineering Partner is a leading specialist of engineering services rendered to the automotive and industrial markets in Sweden, with a range of skills covering all aspects of product development such as mechanical and electrical engineering, hardware and software development, project management, testing and manufacturing support.
With premises in Gothenburg, Trollhättan and Södertälje, Engineering Partner currently employs 164 engineers and is expected to generate revenues of € c.17m in 2017. It benefits from rapid growth, reflecting the increasing needs of the Swedish automotive market for development projects notably dedicated to autonomous and electrical vehicles. Engineering Partner mainly serves Swedish blue chip OEMs through time & material and workpackage contracts.
This acquisition will enable Assystem Global Product Solutions (GPS) to access the Swedish market, to strengthen its commercial relationships with global OEMs and to diversify its customer portfolio, which will overall strengthen its automotive business.
Roch Thaller, Vice President Automotive & Transportation at GPS, said:
"We are delighted to now count Engineering Partner among GPS entities. This acquisition has clear objectives: increase our international footprint, enlarge our global automotive offering, reinforce our capability to propose workpackages and serve our customers with furthermore solutions thanks to our Automotive Engineering Centres".
Andreas Anderberg, IMAP, added:
"Assystem and Engineering Partner is such an excellent match. During our discussions, we discovered many similarities between the companies. Engineering Partner can now also gain access to international expertise and know-how through Assystem which will be valuable given the company’s strong growth. Assystem on the other hand establishes an excellent entry to the Swedish market and customers”.