ACT to acquire CMC Industries
Monday May 10, 6:08 pm Eastern Time
HUDSON, Mass., May 10 (Reuters) - Electronics maker ACT Manufacturing Inc.
(ACTM - news) on Monday said it signed a definitive agreement to acquire
CMC Industries Inc. (CMCI - news) in a $59.2 million deal based on the
stock's closing price.
The combined company would become the seventh largest publicly-traded
electronics contract manufacturer. Revenues of the combined companies
for the past 12 months would have been approximately $582 million.
The deal, subject to shareholder approval and other regulatory and closing
conditions, is expected to boost ACT's profit in calendar 2000
and will be accounted for as a pooling of interests.
CMC shareholders would receive half an ACT share for each CMC share.
On Monday, CMC closed at 7 and ACT closed at 15-3/8.
Santa Clara, Calif.-based CMC on Monday said it expects to report a loss of
between 6 cents and 8 cents per share for the third quarter ended April 30.
It expects revenues as low as $57 million to $60 million due primarily to
delays in the start up of new programs.
A year ago, CMC reported a profit of 8 cents per share on revenues of
$58.6 million.
''This merger addresses many of our strategic business development
objectives, provides a significant opportunity to increase value to
our shareholders and strengthens our ability to bring high quality,
value-added contract manufacturing services to our existing and future
customers on a global scale,'' ACT chairman and chief executive officer
John Pino said in a prepared statement.
''CMC brings a West Coast presence with its Santa Clara, Calif., facility
and provides low cost manufacturing alternatives in both its Corinth,
Mississippi and Hermosillo, Mexico operations,'' Pino said. ''We have no
overlapping customers with CMC so the immediate diversification of our
customer bases will be significant.'' |
