Flextronics International Announces Agreement For Merger
With Kyrel EMS Oyj, A
Finland-Based Electronics Manufacturing Services Provider
STOCKHOLM, Sweden, June 14 /PRNewswire/ -- Flextronics International Ltd. (Nasdaq: FLEX - news), today announced an agreement for Flextronics to acquire the
Finnish contract manufacturer Kyrel EMS Oyj. Kyrel has offered Electronics Manufacturing Services (EMS) since 1983, and has strong, long-established relationships with
key customers in the telecom industry, including Nokia and Alcatel.
''We are very enthusiastic about our partnership with Flextronics,'' said Simo Parhankangas, managing director of Kyrel EMS Oyj. ''It allows us to continue to focus on
delivering superior service to our local customers, while adding the global capabilities and advantages of a world class EMS provider. Partnering with Flextronics is a
positive step for us to enhance our best practices in customer service and to strengthen our global competitiveness,'' Parhankangas said.
''We are pleased to announce the agreement to add Kyrel to Flextronics' Western European operations,'' said Ronny Nilsson, president of Flextronics, Western Europe.
''The addition of Kyrel, with its experience and key customers in the telecom industry, will strengthen Flextronics' position as a leading EMS provider to telecom
customers. This merger, in conjunction with the recent acquisitions of ABB and Ericsson operations in Sweden, will allow Flextronics to offer present and future customers
better service due to improved experience and increased economies of scale,'' Nilsson said.
Kyrel has two operations in Finland and one in Luneville, France. The company employs approximately 900 people and 1998 revenues were $230 million. This transaction
will be accounted under U.S. GAAP as a pooling-of-interests. Flextronics expects to issue approximately 1.9 million shares in the merger. Government approval is required
in Finland and the transaction is expected to close in the quarter ending September 24th, 1999. A one time charge of $3.0 to $3.5 million is expected to be incurred in that
quarter. |
