The past month has seen some consolidation in the original equipment manufacturing (OEM) switch market. Stein Industries Inc., Minneapolis, the parent company of E-Switch Inc., announced the acquisition of Lamb Industries, Portland, Ore. Terms of the deal were not disclosed.
E-Switch is a manufacturer of electro-mechanical switch products including toggle, tact, pushbutton, rocker, snap-action, slide, dip and many illuminated product styles, primarily for original equipment manufacturers (OEMs) of electronic products.
There is some overlap in the companies’ product offerings, but Lamb primarily brings expertise in power-carrying switches, giving the combined companies an expanded slate of switches for all their markets, said Tom Meyers, chief executive officer of Stein Industries. The Lamb brand and operations will continue intact as a subsidiary of E-Switch, led by Larry and Justin Lamb, the company’s founders.
“E-Switch’s real focus has been on board-level switches, such as for PC boards in a computer or printer or any electronics that has a (circuit) board in it. Lamb is particularly strong in power products, the panel-mounted, higher-power switches,” Meyers said.
The E-Switch and Lamb combination will be particularly attractive in industrial markets requiring higher-power switch products, the company said.
Beyond their complementary product lines, the companies share complementary cultures and objectives, Meyers said, with a focus on serving customers, solving problems and offering the marketplace a high quality, broad product line.
E-Switch goes to market through a network of more than 30 independent representatives and Meyers expects adding Lamb – which has primarily been sold direct to distribution – to E-Switch’s sales channel will further enhance the visibility of the Lamb brand, referring to Lamb as one of the industry’s “best kept secrets.”
“We really believe in the rep network, and we’ve invested great deal of time and energy in it over the years. Our distribution is strong as well, with 20-plus distributors, including some of the big electronics distributors. Now Lamb products will have exposure to our broader rep network and distribution network,” Meyers said.
The combined companies will consolidate some of the products that overlap, then will start developing new products together. Switch technology continues to move toward ever-smaller products – particularly micro products such as microsnap and microslide switches – and illuminated switches, which give the OEM products “a certain sex appeal,” Meyers said.
Both companies are privately held and carrying no debt, which made the transaction more attractive. “It enables us to continue investing in this difficult economic time,” said Meyers. “Our market is certainly facing many challenges. We believe companies that are strong financially and can continue to invest, serve customers and focus on strategy will end up ahead of the game when the recession is over. ”