C&K Enters into Agreement to Acquire E.I.S. Electronics; to Create C&K Aerospace Division
C&K, a global provider of switches and high-reliability connectors, has entered into an agreement to acquire E.I.S. Electronics, a specialist in the design and manufacture of Electrical Wiring Interconnection Systems (EWIS) for avionics, defence and aerospace applications.
C&K announced the creation of a new division, C&K Aerospace, merging E.I.S Electronics EWIS capabilities with C&K’s avionics switch and ESCC, NASA and MIL certified space connector business.
CEO of C&K, Lars Brickenkamp said, “The launch of C&K Aerospace signals another step toward C&K’s strategy of becoming a leading provider of systems solutions for our valued customers. C&K Aerospace will be headquartered in Dole, France, with operations in Europe and Asia.”
Burkhard Muller, CEO of E.I.S. Electronics, said, “We are thrilled to become part of C&K Aerospace, which will bring E.I.S. capabilities to new markets. It will enhance our product offering with the highest quality connector portfolio in the industry and will reinforce our ability to respond, adapt, and be flexible, from early project to deliveries to our customers.”
Bruno Prevot, CEO of C&K Aerospace, states, “Combining C&K’s strength in high-reliability connectors designed to withstand the harshest, most unforgiving conditions with E.I.S.’s advanced EWIS design capabilities, we will be able to offer to the existing C&K customer portfolio complete systems solutions for their most complex connectivity design challenges.”
The transaction is expected to close in the third quarter following regulatory approvals.
News Source – C&K
Stratview Insights on EWIS Market
EWIS stands for Electrical Wiring Interconnect System or electrical wiring interconnection system. As per FAR25, EWIS is the wiring system of an aircraft, installed in any area of the aircraft for transmitting electrical energy, including data and signals between two or more intended termination points. EWIS is responsible to ensure the systems keep functioning even in case of a single fault such as a bundle fire, connector failure, or other external failures that can break signal continuity.
The industry was witnessing a sound growth when the grounding of B737 Max in 2019 put a break in the market prospects. The sudden outbreak of the Covid-19 pandemic further deepened the industry challenges with several bankruptcies, huge COVID-related costs leading to negative cash flows, and supply-chain disruption. As a result, the EWIS market recorded a colossal decline of 30% in 2020.
However, the resuming aircraft deliveries, ungrounding of B737 Max, and revamp in the production rate of key programs such as A320, are leading the industry towards recovery. It is expected that the EWIS market will grow at a robust CAGR of 8.4% over the next five years to reach an estimated value of US$ 2.1 Billion in 2026.