Scanfil completed the ADCO Circuits acquisition in the US

Translation: Original published in Finnish on 12/11/2025 at 08:20 am EET

Scanfil announced on Tuesday evening that it had completed the acquisition of US electronics contract manufacturer ADCO Circuits. The closing of the deal was expected and has no material impact on our short-term estimates, as we had expected the transaction to be completed during Q4. We believe ADCO is a good strategic fit for Scanfil, and the valuation of the arrangement is also moderate, so the value creation potential of the rather small transaction seems promising. Our original comment on the acquisition can be found here.

The transaction was completed after a slight regulatory delay

Scanfil announced that it has completed the acquisition of ADCO Circuits, which the company originally announced in June 2025. The transaction received regulatory approval and was completed on December 10, 2025. Originally, the transaction was supposed to be completed in Q3, but in our view, the finalization was slightly delayed due to reasons related to the authorities (cf. US government shutdown in the fall). 

The acquired company has generated revenue of 35.2 MUSD and an EBIT of 4.0 MUSD in the last 12 months from the end of November, which means a strong EBIT margin of 11.3%. Thus, ADCO's business appears to have grown at a single-digit pace during 2025, and profitability has remained stable at a high level when comparing the latest figures to ADCO's 2024 numbers released by Scanfil at the time of the acquisition announcement.

We believe the micro-timing of acquisitions has no impact on our investment view of the company

The closing of the transaction in December was in line with our expectations, as we had anticipated it to close during Q4, even though the timeline was slightly extended from the original estimate. As we had already included the completion of the transaction in our forecasts for the end of the year, the announcement does not have a greater impact on Scanfil's short-term estimates than the marginal timing adjustment. We will refine our estimates concerning the ADCO acquisition and the MB deal that has been postponed to January (latest comment here), before Scanfil's financial statements are published in February. In our view, slight shifts in the timing of transactions have no practical effect on our investment view of Scanfil's share.