adding ELAM @ 3 1/4 .
biz.yahoo.com
Tuesday May 23, 5:02 pm Eastern Time
Company Press Release
SOURCE: Elamex S.A. de C.V.
Elamex Closes Transaction Divesting Electronics Contract Manufacturing Operations
EL PASO, Texas, May 23 /PRNewswire/ -- Elamex S.A. de C.V. (Nasdaq: ELAM - news) announced today that it has closed the transaction selling its contract electronics manufacturing
services (EMS) operations to Plexus Corp. of Neenah, Wis., which was previously announced on March 30. Under the terms of the deal, Elamex will receive approximately $53.7 million in cash, subject to certain adjustments, relating to the final determination of book value.
``We are very pleased with the culmination of this sale. We are now well positioned to increase our market share in our custom component manufacturing operations such as metal stamping and plastics injection molding and our shelter services through acquisitions and green field investments,'' said Hector Raynal, Elamex's president and chief executive officer.
Under the terms of the agreement, Elamex will sell its EMS operations currently housed in two leased plants in Juarez, Mexico. These operations represented approximately $82 million in revenue in 1999 and include approximately 250,000 square feet of manufacturing space.
Elamex is engaged in a joint venture for plastics and metal stamping with General Electric. The joint venture known as Qualcore, operates a 94,000 sq. ft. facility in Juarez, Mexico and is building a second 115,000 sq. ft. facility in Celaya, northwest of Mexico City. Qualcore is registered as ISO 9002 in the U.S.
In addition, Elamex operates a wholly owned metal stamping subsidiary, Precision Tool, Die and Machine, Inc., in Louisville, Kentucky. Precision operates two facilities with a combined square footage of 205,000 and is registered as both ISO 9002 and QS 9000. Both Qualcore and Precision are engaged in Six Sigma quality initiatives.
Elamex will continue to provide shelter services throughout Mexico for non-EMS companies.
Under the shelter business model, Elamex provides labor and administrative services. Currently, Elamex supports shelter operations in the following Mexican cities: Juarez, Nuevo Laredo, Monterrey, Torreon, Reynosa and Chihuahua, representing a combined total of over 1,000,000 square feet of manufacturing space.
Elamex S.A. de C.V. is a 26-year-old manufacturing services provider, headquartered in Mexico. Its 17 Mexico-based facilities provide turnkey electronic, electromechanical and
mechanical contract manufacturing; repair and refurbishment; and shelter services to a variety of industries including: telecommunications, medical, industrial control, automotive, avionics, defense and consumer products.
This press release includes forward-looking statements that involve risks and uncertainties, including, but not limited to, risks associated with the company's future growth and profitability, the ability of the Company to continue to increase sales to existing customers and to new customers and the effects of competitive and general economic conditions and the ability of Elamex's own customers to meet their expectations and projections.
SOURCE: Elamex S.A. de C.V. |
