BRIDGEWATER, MA – Chase Corp. has divested its contract manufacturing services business to fellow EMS provider MC Assembly in a deal valued at $13 million.
The sale of substantially all of the assets of Chase EMS closed on June 30. The deal included all Chase EMS employees, as well as its leased facility in Winchester, MA.

MC Assembly now has three sites, including its Palm Bay, FL, headquarters and a facility in Zacatecas, Mexico. The company is among the 60 largest EMS companies in the world, according to the CIRCUITS ASSEMBLY Directory of EMS Companies.

For the fiscal year ended Aug. 31, 2009, Chase EMS had revenues of $16.4 million and income before taxes of approximately $1.7 million. For the six months ended Feb. 28, the segment had revenues of $10.1 million and income before taxes of $1.2 million.

MC Assembly paid $13 million for the unit, a price that will be adjusted upward if net working capital exceeds $4.5 million.

Proceeds from the sale will be used for debt reduction and continued investment in Chase’s core tapes and coatings businesses.

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