Wednesday October 6, 8:27 am Eastern Time
Company Press Release
SOURCE: ACT Manufacturing, Inc.
ACT Manufacturing, Inc. Announces Asset Acquisition from
GSS/ARRAY Technology, Inc.
HUDSON, Mass., Oct. 6 /PRNewswire/ -- ACT Manufacturing, Inc.
(Nasdaq: ACTM - news) announced today that it had signed an
Asset Purchase Agreement to acquire certain assets of GSS/
ARRAY Technology, Inc. of San Jose, California, a subsidiary
of GSS/ARRAY Technology Public Company, Ltd., a Thailand
company traded on the Thailand Stock Exchange. The
acquisition is subject to various closing conditions.
Under the terms of the agreement, ACT Manufacturing, Inc.
would acquire certain inventory and fixed assets of this
subsidiary for approximately $13 million in cash.
Additionally, ACT would assume on-going relationships with
selected GSS/ARRAY Technology, Inc. U.S. customers. Upon the
closing of the acquisition, ACT expects to hire certain
GSS/ARRAY employees to support this additional operation.
Commenting on the agreement, John A. Pino, Chairman and
Chief Executive Officer of ACT, said, ``Today's commitment
to acquire certain assets of GSS/ARRAY Technology, Inc. is
intended to strengthen our presence in the western United
States. The transaction would result in significant
relationships with additional high technology customers
which would utilize ACT's high end technology and radio
frequency capabilities.'
Robert Zinn, Chief Executive Officer of GSS/ARRAY Technology
Public Company, Ltd., commented, ``We are pleased that this
Asset Purchase Agreement has been signed with ACT
Manufacturing, Inc. Upon the closing of this acquisition,
our customers should receive excellent service and the
opportunity for continued growth with a company that shares
the GSS/ARRAY tradition of providing technically advanced
service to high technology OEMs.'
ACT Manufacturing, Inc., headquartered in Hudson, Mass.,
provides value-added electronics manufacturing services for
original equipment manufacturers in the networking and
telecommunications, computer, industrial and medical
equipment markets. The Company provides OEMs with complex
printed circuit board assembly primarily utilizing advanced
surface mount technology, mechanical and molded cable and
harness assembly, electro-mechanical subassembly, and total
system assembly and integration. The Company has operations
in Hudson, Mass.; Mansfield, Mass.; Lawrenceville, Ga.;
Corinth, Miss.; Santa Clara, Calif.; Huntsville, Ala.;
Dublin, Ireland; Hermosillo, Mexico; and Taipei, Taiwan.
This press release contains forward-looking statements
subject to risks and uncertainties that could cause actual
results to differ materially from those anticipated,
including statements concerning the effects of the
acquisition, expected benefits related to the acquisition,
expected financial and operating results, relationships with
new customers and growth of the customer base, revenue and
shareholder value, future customer shipments, and the plans
and objectives of management. Those risks and uncertainties
include, among others: the risk of not closing the
acquisition from GSS/ARRAY Technology, Inc. in a timely
fashion; the risk of not integrating the GSS/
ARRAYTechnology, Inc. assets or personnel successfully;
costs associated with the acquisition; the risk of not
obtaining the expected benefits of the acquisition; the risk
of not integrating the CMC Industries business successfully;
the inability to achieve expected synergies from the merger
with CMC Industries; costs associated with the merger with
CMC Industries; the Company's ability to expand its customer
base and grow its operations through acquisition or
otherwise; the effectiveness of managing manufacturing
processes; increased competition and its effects on pricing,
revenues and gross margins, and its customer base; future
customer demand; the Company's ability to timely complete,
configure and ship products; and changes, reductions, delays
or cancellations of customer orders. In addition, ACT's
business and results of operations are subject to numerous
additional risks and uncertainties, including the short-term
nature of customer orders, customers' announcements and
introduction of new products or new generations of products,
evolutions in the life cycles of customers' products,
inventory obsolescence, currency exchange rate movements,
trends in the electronics industry and changes or
anticipated changes in economic conditions. For a more
detailed discussion of the risks and uncertainties of ACT's
business, please refer to the Company's periodic reports and
registration statements filed with the Securities and
Exchange Commission, including the Company's Annual Report
on Form 10-K for the period ended December 31, 1998 and the
Registration Statement on Form S-4 filed on June 23, 1999.
SOURCE: ACT Manufacturing, Inc. |
