Sanmina Agrees in Principle to Acquire Alcatel's Manufacturing Operations In Richardson, Texas
Acquisition Expands Sanmina's World Class Engineering and Manufacturing
Services and Enables Alcatel to Focus on Bringing Customers the Latest
SAN JOSE, Calif., and DALLAS, June 25 /PRNewswire/ -- Sanmina Corporation (Nasdaq: SANM), a leading electronics contract manufacturer, and Alcatel (NYSE: ALA), a leading global supplier of next-generation networks, today announced they have signed a letter of intent for Sanmina to acquire Alcatel's manufacturing operations in Richardson, Texas. Alcatel announced in February 2001 that it planned to divest this operation. The transaction is expected to close in Sanmina's September 2001 quarter, following the execution of a definitive agreement and completion of all other government requirements. Financial terms of the agreement, which includes a multi-year supply contract, were not disclosed. Alcatel's advanced manufacturing operation in Richardson, which has a highly skilled management team and staff totaling 450 employees, is ISO 9001 and TL 9000 certified and occupies facilities totaling approximately 320,000 square feet. "We believe this transaction underscores our commitment to working closely with our customers," said Jure Sola, Sanmina's chairman and chief executive officer. "For over 15 years, Alcatel has been a valued customer, and we are pleased that they have selected us as a strategic manufacturing partner. We look forward to an expanded relationship and to providing this leading communications company with the superior products and services customers expect from Sanmina. "The planned acquisition of this operation expands our world-class manufacturing capabilities, supporting our strategic growth goals. We now have over 60 global facilities providing our customers with cost efficient manufacturing solutions," concluded Sola. "This move is part of Alcatel's strategic effort to focus resources on new-product introduction and product integration," said Mike Quigley, president, Alcatel Americas. "It will enable us to better focus our internal resources on providing the latest technology that our customers require." The divestiture also is expected to result in operational efficiencies for Alcatel that will improve cash flow and further strengthen its position in the marketplace. About Alcatel Alcatel builds next generation networks, delivering integrated end-to-end voice and data networking solutions to established and new carriers, as well as enterprises and consumers worldwide. With 130,000 employees and sales of Euro 31 billion in 2000, Alcatel operates in more than 130 countries. Information about Alcatel is available at http://www.alcatel.com . About Sanmina Founded in 1980, Sanmina Corporation (www.sanmina.com) provides a cost-efficient, design and manufacturing solution to the world's leading original equipment manufacturers (OEMs) in the communications, medical, industrial instrumentation, and high-end computer sectors. Sanmina's end-to-end solution includes design engineering and product development, New Product Introduction, global materials management, PCB and backplane fabrication and assembly, custom memory and DSP modules, enclosure systems, cable assembly, complete system integration and test, global order fulfillment and distribution, and end-of-life product services. OEMs benefit from this model by dealing with a single-source supply-chain and global supply-base, which helps them achieve cost efficiencies in material acquisition as well as flexibility to reduce lead times. Safe Harbor Statement The foregoing, including the discussion regarding the company's future prospects contain certain forward-looking statements that involve risks and uncertainties, including uncertainties associated with economic conditions in the electronics industry, particularly in the principal industry sectors served by the company, changes in customer requirements and in the volume of sales to principal customers, the ability of the company to assimilate acquired business and to achieve the anticipated benefits of such acquisitions, and competition and technological change. The company's actual results of operations may differ significantly than those contemplated by such forward-looking statements as a result of these and other factors, including factors set forth in the company's 2000 Annual Report on Form 10-K filed with the Securities Exchange Commission on December 18, 2000, and the company's most recent quarterly 10-Q Report dated May 11, 2001. MAKE YOUR OPINION COUNT - Click Here http://tbutton.prnewswire.com/prn/11690X66452856
SOURCE Sanmina Corporation
More by this Source
Sanmina Reports First Quarter Fiscal 2014 Results
Jan 27, 2014, 16:05 ET
Sanmina Receives Prestigious Product Innovation Award From Ciena
Jan 22, 2014, 08:30 ET
Browse our custom packages or build your own to meet your unique communications needs.
Learn about PR Newswire services
Request more information about PR Newswire products and services or call us at (888) 776-0942.