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
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 .
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
SOURCE Sanmina Corporation