Amphenol pursues a strategy of big acquisitions
Amphenol announced that it will acquire one of CommScope’s businesses for US$2.1 billion. The closing date for the deal will be 2025, and the payment will be in cash. The acquisition will allow Amphenol to strengthen its position and broaden its product offering to customers. Goldman Sachs and Moelis & Co. are advising on the deal.
The buyer is interested in CommScope’s business of installing wireless networks and distributed equipment such as antennas. It also develops and supports connectivity and communications solutions.
Amphenol is a manufacturer of various electrical equipment, the main areas of interest being:
– optical fibres and connectors based on them;
– antennas and their accessories;
– sensors.
According to Bloomberg, Amphenol’s acquisition is Amphenol’s largest. It surpasses the deal with Carlisle Cos, which was completed in 2024. At that time, the company acquired the cable and wiring equipment maker for US$2 billion.
Amphenol business overview
Amphenol is an American leader in electrical interconnect and fibre optic products and systems. Businessman Arthur Schmitt founded it as the American Phenolic Corporation in 1932. Initially, the company manufactured components for military equipment. The business really took off during the Second World War when the company became a significant supplier of connectors. The connectors were for use in a wide range of equipment, from aircraft to radios.
After the war, Amphenol tried to maintain its position in the market, but with mixed success. As a result, the company became part of Bunker Ramo in 1967, where it remained until 1982.
Today, the company offers a wide range of products. It is in demand in various sectors of the economy, including:
– electronics;
– information technology;
– automotive;
– mobile phone manufacturing;
– medicine and medical equipment;
– wireless infrastructure deployment;
– audio system manufacturing.
The company’s most important division is Amphenol Aerospace. It includes the creation of the widespread MIL-DTL-38999 connector. This division consists of a research base that seeks innovation in a variety of areas.
AFSI’s Fibre Optics Division, located in Texas, produces connectors and systems using this material. More than 100 specialists work there.
The Amphenol Cables on Demand division manufactures and sells cable products. The products are sold via a separate online shop. The product range consists of approximately 2,500 items.
Amphenol is actively expanding its business by acquiring other companies. Major acquisitions in recent years include MTS Systems and Halo Technology in 2021. In addition, the company agreed to acquire the Indian company Exa Thermometrics in 2020.
