Sanmina to Buy Certain Assets of E-M-Solutions
Purchase of Manufacturing Operations Expands Sanmina's
Advanced Electronic Enclosure Capabilities
SAN JOSE, Calif., Sept. 24 /PRNewswire/ -- Sanmina Corporation (Nasdaq: SANM), a leading electronics contract manufacturer, announced today that it has received approval from the U.S. Bankruptcy Court for the Northern District of California as the highest and best bidder for the purchase of assets of E-M-Solutions, Inc., a privately held international electronic enclosure manufacturer. These assets include certain manufacturing operations in the United States as well as the stock of E-M-Solutions' subsidiaries incorporated in Mexico and Northern Ireland. The transaction is subject to clearance under the federal Hart-Scott-Rodino Antitrust Improvements Act (HSR). Because the HSR waiting period is shortened to 15 days in bankruptcy situations, the transaction is expected to close in early October. The cash purchase price will be up to $110.65 million, $20.0 million of which is subject to reduction based upon a post-closing audit of E-M-Solutions' balance sheet. For Sanmina's 2002 fiscal year, revenues generated from this acquisition are expected to be between $200 to $300 million and the transaction is expected to be accretive before any infrequent charges. Jure Sola, Sanmina's chairman and chief executive officer, said, "The purchase of these ISO-certified operations, which include both advanced engineering design as well as electronic enclosure manufacturing facilities and electro-mechanical integration services, will greatly support our total systems solutions capabilities in key regions of the United States, Europe and Mexico. Importantly, both companies target similar, critical market sectors: high-end computing, data storage/networking, and telecommunications. The two companies also share a commitment to continuous improvement and a comprehensive quality management system. As a result, leading original equipment manufacturers (OEMs), such as EMC, LTX and Sun Microsystems are key E-M-Solutions' customers. "We are pleased to welcome E-M-Solutions' customers, vendors and employees to the Sanmina family and are committed to achieving a smooth transition," Sola concluded. Company Profile Founded in 1980, Sanmina Corporation (www.sanmina.com) provides a cost-efficient, design and manufacturing solution to the world's leading original equipment manufacturing (OEMs) in the communications, medical, industrial instrumentation, and high-end computer sectors. Sanmina's complete end-to-end solution includes design, engineering, circuit fabrication of bare printed circuit boards, circuit board and backplane order fulfillment, 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 August 10, 2001. MAKE YOUR OPINION COUNT - Click Here http://tbutton.prnewswire.com/prn/11690X81137647
SOURCE Sanmina Corporation
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