News

SAN JOSE – Sanmina-SCI has signed a definitive agreement with Foxteq Holdings (a subsidiary of Foxconn Technology) to sell certain assets of its PC business, the company said today.

Sanmina expects to net $80 million to $90 million on the sale, which is expected to close during the June quarter.

Separately, Sanmina-SCI said it has entered into a memorandum of understanding with Lenovo to sell its Monterrey, Mexico, manufacturing facilities and other assets.

The PC asset sale, which Sanmina-SCI officers announced in November 2006, is expected to reap $200 million in financial benefits. The company decided to cut ties with the business unit – a legacy of SCI – as it was no longer core to its long-term strategy.

The PC business generated $3.3B billion in sales in fiscal 2007, or roughly 31% of total sales. Its three primary customers are HP, IBM and Lenovo.