PKC Divests Electronics Business to Enics
HELSINKI -- PKC has followed through on a previous announcement by divesting its electronics manufacturing unit to Enics in a deal valued at 10 million euros ($10.7 million).
PKC had announced plans to divest PKC Electronics shares last May.
The deal is subject to customary transaction closing adjustments and is expected to be close during the current quarter. Enics will pay cash for the business. The transaction will have no material impact to the current financial results of PKC, which has classified the unit as a non-current asset held for sale and reported as discontinued operations.
A Top 40 EMS provider, Enics has nine electronics assembly factories in Europe and China.
PKC is one of the world's largest providers of wiring harnesses. Its contract electronics business is roughly $100 million a year in revenue. PKC has three EMS factories in China, Russia and Sweden. It is not clear whether Enics will keep those plants open.
In a joint statement, Enics president and CEO Hannu Keinänen said, "The acquisition of PKC Electronics is in line with Enics’ strategic plan to focus on growth in industrial electronics and related services. We strongly believe in electronics manufacturing and want to be a strong player in the market – this acquisition strengthens our position even more."
PKC Group president and CEO Matti Hyytiäinen said, "The divestment of 100% of PKC Electronics enables PKC Group to continue to focus on its core businesses of commercial vehicles, rolling stock, recreational products and other selected segments. Through the divestment PKC Electronics becomes a part of larger EMS provider which brings the benefits of economies of scale and larger resources and being part of core business."
