Sanmina-SCI to Acquire Pentex-Schweizer Circuits Ltd.
Sanmina-SCI Corp. (San Jose, CA), a global electronics manufacturing services (EMS) company, has entered into an agreement to acquire Pentex-Schweizer Circuits Ltd., a provider of printed circuit board fabrication. The acquisition includes operations in Wuxi, China and Singapore.
Under the agreement, Pentex-Schweizer shareholders will be entitled to elect to receive $0.2006 per share. The total transaction value, including consideration for shares and options, is approximately $78.8 million.
The transaction is subject to several conditions, including approval by Pentex-Schweizer shareholders and court approval of the transaction under Singapore law, and is expected to close in Sanmina-SCI's fiscal 2004 fourth quarter or in its first quarter of fiscal 2005.
In addition, Sanmina-SCI and Pentex-Schweizer Circuits Ltd. have entered into a transition manufacturing agreement under which Pentex-Schweizer will provide PCB fabrication services to Sanmina-SCI during the period prior to closing and under which the companies will undertake transition manufacturing activities.
The operations in Wuxi, China and Singapore comprise 470,000 sq. ft. of manufacturing space, with additional expansion capabilities in China of 450,000 sq. ft. These two operations complement Sanmina-SCI's PCB facility in Malaysia.
Jure Sola, chairman and chief executive officer of Sanmina-SCI, said, "For quite some time, we have been carefully evaluating a number of expansion opportunities in China.
Pentex-Schweizer Circuits Ltd., an efficient, well-run operation with a group of talented employees, will provide us with a solid foundation to support our customers' requirements in this region. We expect to capitalize on the company's ability to manufacture high quality boards by leveraging our vertical integration strategy.
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