PARIS -- Asteelflash has signed a deal to be acquired by Universal Scientific Industrial by next September.
The pending deal was announced by CIRCUITS ASSEMBLY last week.
Following a vote by Asteelflash's shareholders, Sun Moonlight Investment Control agreed to pay $450 million in cash and stock for Asteelflash. Under terms of the deal, 89.6% of the payment will be in cash, and the remainder in private company Huanxu shares. Following the acquisition, which is expected to close in the third quarter of 2020, Asteelflash will become a subsidiary of USI (which also goes by the Chinese name of Huanxu Electronics). Asteelflash's existing operations management team will be retained, according to public reports.
The deal is subject to approval by the governments of China, the US and the European Union.
Sun Moonlight is a major shareholder of USI/Huanxu Electronics. The two companies will be merged following the transaction, with Asteelflash handling smaller runs and USI performing the volume builds.
Asteelflash has 17 production sites in 10 countries, including France, Germany, the UK, Tunisia, China, Taiwan, Czech Republic, Poland, Mexico and the US. It had sales of about $1 billion last year, according to the CIRCUITS ASSEMBLY EMS Top 50, and profits of $70 million to $80 million.
USI has plants in Taiwan, Mexico, China, Poland, and a joint venture in Brazil.
Dec. 13: Updated to reflect purchase price.