SAN JOSE, Calif., March 26, 2018 /PRNewswire/ -- Flex Ltd.
(NASDAQ: FLEX) has entered into an agreement with Multi-Fineline
Electronix Inc. ("MFLEX"), a wholly-owned subsidiary of Suzhou
Dongshan Precision Manufacturing Co., Ltd ("DSBJ"), to divest the
China-based operations of the Flex
subsidiary, Multek.
According to the terms of the agreement, upon closing, MFLEX
will acquire all of the equity interests in the non-US subsidiaries
of Flex that operate the China-based business of Multek, for proceeds
of approximately $273 million, net of
cash. Multek will continue to operate with its current name and
location in Zhuhai, China. The
US-based Multek operation will remain a wholly owned Flex
subsidiary.
Franck Lize, President of Multek, said, "Multek has built a
strong reputation for its industry-leading capabilities that range
from simple Low Layer Count rigid PCBs, to complex 46-Layer PCBs,
High Density Interconnect (HDI) Flexible Printed Circuits, and
Rigid-Flex PCBs. Today, we are pleased to embark on the next step
in Multek's evolution as we bring our talent and technology to
DSBJ's industry-leading businesses."
Yonggang Yuan, Chairman of DSBJ
said, "The acquisition of Multek is another step forward towards
our ultimate goal of advancing DSBJ's technological offerings and
globalization of our company. We are excited about our recent
achievements after the acquisition of MFLEX, and look forward to
welcoming Multek to DSBJ's family of companies. This strategic
acquisition is expected to enhance our product offerings to our
customers and is yet another step in solidifying DSBJ's position as
a global technology company."
The transaction is expected to close in the third quarter of
calendar year 2018 and is subject to customary closing conditions,
including regulatory approvals.
About MFLEX and DSBJ
MFLEX is a global provider of
high-quality, technologically advanced flexible printed circuits
and assemblies to the consumer electronics industry with
manufacturing facilities in Suzhou, China, and wholly owned by DSBJ. MFLEX targets
its solutions within the consumer electronics market and, in
particular, focuses on state of the art applications where flexible
printed circuits are the enabling technology in achieving a desired
size, shape, weight or functionality of an electronic device.
Founded in 1998, Suzhou Dongshan Precision Manufacturing Co.,
Ltd. (DSBJ) is a global, advanced technology solution provider of
antenna, filter, LED packaging, small pitch module displays, BLU,
Touch Panel, LCM, and other technologically advanced electronics
assemblies. Current applications for DSBJ's products include
consumer, automotive, medical, and the semi-conductor industries.
DSBJ is publicly traded on Shenzhen Stock Exchange since
April 2010 and the stock code is
002384.
About Multek
Multek, a wholly owned subsidiary of
Flex, is a leading value-add manufacturer of printed circuit board
technologies offering a broad spectrum of PCB engineering and
manufacturing expertise including high density interconnect,
multilayer, flexible circuit and assembly solutions. Built upon a
foundation of rapid response, technology leadership and high
reliability solutions for PCB fabrication electronics design and
manufacturing, Multek enables customers to take products to market
quickly through early engineering, new product introduction and
volume production through a full range of high-performance products
and solutions. For more information, please visit
www.multek.com.
About Flex
Flex is
the Sketch-to-Scale™ solutions provider that
designs and builds Intelligent Products for a Connected
World™. With approximately 200,000 professionals across 30
countries, Flex provides innovative design, engineering,
manufacturing, real-time supply chain insight and logistics
services to companies of all sizes in various industries and
end-markets. For more information, visit flex.com or
follow us on Twitter @flexintl. Flex – Live
Smarter™
Forward-Looking Statements
This press release contains
forward-looking statements within the meaning of U.S. securities
laws including statements related to the expected benefits of the
planned divestiture of the China-based operations of the Flex subsidiary,
Multek. These forward-looking statements involve risks and
uncertainties that could cause the actual results to differ
materially from those anticipated by these forward-looking
statements. Readers are cautioned not to place undue reliance on
these forward-looking statements. These risks include the
possibility that the divestiture may not be completed as planned or
at all, difficulties or delays in obtaining regulatory approvals
for the proposed transaction, and the possibility that the expected
benefits from the planned divestiture may not be realized in a
timely manner or at all, and the other risks as described under
"Risk Factors" and "Management's Discussion and Analysis of
Financial Condition and Results of Operations" in our reports on
Forms 10-K and 10-Q that we file with the U.S. Securities and
Exchange Commission. The forward-looking statements in this press
release are based on current expectations and Flex assumes no
obligation to update these forward-looking statements.
Paul
Brunato
|
Kevin
Kessel
|
Media &
Press
|
Investor
Relations
|
1 (408)
576-7534
|
1 (408)
576-7985
|
paul.brunato@flex.com
|
kevin.kessel@flex.com
|
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SOURCE Flex