Irvine’s Infinite Electronics Inc., a global supplier of electronic components for wired and wireless communications networks, is making a major push into Europe with the purchase of Netherlands-based Cable Connectivity Group (CCG).
The CCG acquisition marks “the first footprint that Infinite will have in Europe,” CEO and President Penny Cotner told the Business Journal on Nov. 9.
“European expansion has been on our list of strategic initiatives for a number of years.”
Infinite Electronics offers a broad range of components, assemblies, and wired/wireless connectivity products serving the aerospace/defense, industrial, government, consumer electronics, instrumentation, medical and telecommunications markets.
Infinite prides itself on maintaining a strong inventory position and on fulfilling customers’ orders quickly. A company motto: “Urgency is in our DNA.”
CCG, which is being sold by a pair of Dutch investment firms, is a supplier of cables, ready-to-connect cable systems and cable accessories, expanding the Irvine firm’s presence in the European market.
Cotner said CCG will bring seven brands to the business. Infinite currently has 13 brands, not including CCG’s offerings.
The European arm of the company’s business will be called Infinite Europe, she said.
“The leadership team is capable of driving the business forward.” Cotner said. “It’s the first acquisition in Europe but we do already have facilities in China.”
Approaching $400M
Cotner declined to specify financial terms for the CCG purchase. Infinite Electronics is estimated to have annual sales approaching $400 million, though the company doesn’t disclose any figures.
The deal comes after the acquisition of Infinite Electronics by private equity giant Warburg Pincus early last year.
That deal, also made on undisclosed terms, helped boost the company’s geographic and product line expansion, and entry into new, high-growth markets, officials said at the time.
“We’re always looking for other potential acquisitions, and that’s true globally. We’ll continue to look in Europe. We’ll continue to look in North America,” Cotner says.
Cotner said working with new owners Warburg Pincus has been “fantastic,” saying they are “incredibly supportive.”
Pasternak, Fairview
Infinite Electronics’ portfolio of 13 brands includes Pasternack Enterprises, whose radio frequency and microwave products are used in military, aerospace and commercial industries; L-com Global Connectivity, which makes a variety of cable assemblies, connectors, adapters and wireless products; and Fairview Microwave, whose products serve engineers and systems designers in commercial and military markets.
Infinite will have approximately 2,000 employees globally once the acquisition is completed. The deal is expected to be finalized in the first three months of next year.
With 200 employees in Irvine, the company ranked No. 8 on this year’s Business Journal list of largest OC telecommunications companies by headcount. Infinite currently has more than 1,000 employees globally, according to Cotner.
Infinite was advertising for numerous positions on its website as of Nov. 15, including tax analyst and customer service representative, both in Irvine.
Cotner makes it clear the company is on the lookout for more purchases.
“We’re always continuing to look at potential other acquisitions,” both in Europe and North America, she said, while the 2023 goal is to “broaden the product portfolio.”
Amid ongoing supply chain issues in the economy, “we maintain a very strong inventory position,” Cotner says.
She emphasizes the company can ship an order the same day that it is received.
“We serve a critical need in the engineering space.”
Euro Leaders Staying
Infinite is buying CCG from Torqx Capital Partners and TKH Group NV, both based in the Netherlands.
TKH, which had a 41.5% stake in CCG, said it expected to post a net profit of about $36.2 million from the transaction.
CCG operates across Europe with offices and production and distribution facilities in the Netherlands, Belgium, Germany, Poland, Italy and China. CCG is comprised of the following brands: Jobarco, Pantaflex, Capable, TKD, ConCab, Schrade Kabeltechnik and KC Industrie.
Its customer base includes businesses in both the industrial and electronics end-markets.
CCG’s CEO Wouter-Jan van der Wurff and CFO Derk Veraar will join the Infinite leadership team.
