Wow, Are These Guys Being Aggressive.
I'm amazed by all the recent deals Flex is doing.
These guys are in one heck of a hurry to get even
bigger. Just added some shares at 44 7/8 today.
Good luck. Peter.
Cabletron Systems Sells Manufacturing and Repair Operations to
Flextronics International
Business Wire - January 19, 2000 08:33
ROCHESTER, N.H. & SAN JOSE, Ca.--(BUSINESS WIRE)--Jan. 19, 2000--
Company Delivers On Commitment to Outsourcing With Deal Worth
Approximately $100 Million; Local Employment Will be Maintained
Cabletron Systems and Flextronics International (NASDAQ:FLEX)
today announced that they have entered into a definitive agreement
in which Cabletron will divest manufacturing and repair services
operations located in Rochester, New Hampshire and Limerick,
Ireland to Flextronics. Under terms of the agreement, Flextronics
will acquire manufacturing-related assets and inventories for
approximately $100 million, and will hire Cabletron's worldwide
manufacturing workforce of approximately 1,000.
"By partnering with Flextronics, Cabletron continues along its
path of focusing on core competencies and completes its plan for
100% outsourcing of manufacturing--an important milestone and
further evidence that we intend to execute on our strategy,"
said Piyush Patel, Cabletron's Chairman and CEO. "We are
looking forward to an ongoing, mutually-rewarding relationship
with Flextronics, and are very pleased that this approach will
also allow this highly skilled and dedicated workforce to
remain employed in the local community."
In addition, the transaction is expected to:
- increase Cabletron's competitive position -- the Flextronics
partnership will enable Cabletron to continue to improve its
time-to-market, quality, competitive pricing flexibility and
ultimately lower its cost of goods, and
- offer economies of scale on component sourcing and manufacturing
operation through Flextronics' expertise.
Flextronics International, which anticipates revenue from the
acquired assets of approximately $300 million during Flextronics'
FY2001, is a leading global provider of electronics manufacturing
services, including design, prototyping, printed circuit board
fabrication and advanced manufacturing. The company will work in
close cooperation with Cabletron's Supply Chain Management
organization, which is chartered with ensuring that customers
continue to receive products with exceptional technology and value.
The acquisition of Cabletron's Rochester manufacturing facility
provides Flextronics with a substantial presence in the Northeast.
As part of its effort to deliver world-class manufacturing services
to Cabletron and others, Flextronics plans to make a substantial
investment to create state-of-the-art manufacturing centers.
"Complementary to our recently announced acquisition of the Dii
Group, the Cabletron partnership allows us to execute with speed
and flexibility on our plan to develop a strong presence on both
the East Coast and in Ireland," said Michael Marks, CEO of
Flextronics, International.
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