HANGZHOU, CHINA – Scanfil EMS is selling the entire share capital of its subsidiary Scanfil (Hangzhou) Co. for €18.4 million to Hangzhou Cabinet Technology, a mechanics manufacturer.

According to the signed agreement, closing is subject to certain usual preconditions, expected to be met during the next few weeks. The Scanfil Group will record the transaction amount in the third quarter.

Scanfil (Hangzhou) Co. focuses on sheet metal mechanics, with revenue of €29 million and operating profit of €2.2 million in 2019. Employees there numbered 400 as of Mar. 31. Personnel of the plant will continue to work for the sold company after closing.

Scanfil will concentrate its Chinese operations on its factory in Suzhou, focusing on EMS and demanding integration. Scanfil will continue to use the mechanics services of the Hangzhou plant.

As a result of the transaction, Scanfil estimates 2020 revenue will be €580 million to €620 million and adjusted operating profit €38 million to €42 million. The nonrecurring positive effect of the transaction on operating profit is approximately €11 million.

Hangzhou Cabinet Technology focuses on network data transmission and storage systems and servers. Its headcount is about 500. Sales in 2019 were around RMB 250 million.

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