HADCO Corporation Announces The Acquisition of Continental Circuits Corporation
PR Newswire, Tuesday, February 17, 1998 at 09:27
SALEM, N.H., Feb. 17 /PRNewswire/ -- Hadco Corporation (NASDAQ:HDCO)
announced today that it agreed to acquire Continental Circuits Corporation
(NASDAQ:CCIR) for $23.90 per share, approximately $185 million in cash, plus
the assumption of approximately $33 million in debt. In addition Frederick G.
McNamee, III, Chairman, President and Chief Executive Officer of Continental
Circuits, has agreed to reinvest in the combined company and has agreed to
enter into an employment contract.
Mr. McNamee, along with other executives of Continental Circuits including
James Buchanan, Vice President of Marketing and Sales, Steven Lach, Vice
President of Operations, and Gerome Wilson, General Manger of the Austin,
Texas facility have signed a Stock Holders Agreement agreeing to vote, any
shares they may be entitled to vote, in favor of the transaction and to tender
their shares in the offering.
The acquisition of Continental Circuits, a leading manufacturer of complex
multilayer printed circuits, will consolidate Hadco's position as the largest
publicly owned interconnect circuit producer in North America, and one of the
largest in the world. In addition, it will improve Hadco's position in the
complex multilayer circuit board segment, one of the fastest growing segments
of the interconnect industry.
Andy Lietz, Chief Executive Officer and President of Hadco, stated, "Our
objective is to enhance our leadership position in the global interconnect
market. With the worldwide proliferation of complex electronic products, the
increased scale of operations provided by the Hadco and Continental Circuits
combination will allow Hadco to offer the greatest array of technologically
advanced interconnect products in the world. On a geographic basis, the
acquisition of Continental Circuits provides us with a significant Southwest
presence in volume and quick-turn prototype production of high quality printed
circuits. Regarding customer base, Continental Circuits has developed many
long term relationships with leading companies in the electronic industry that
will be very complimentary to Hadco's customer base. The acquisition is a key
element in Hadco's long-term growth strategy."
Rick (Frederick) McNamee, Chairman, President and Chief Executive Officer
of Continental Circuits, stated, "With the combination of Hadco and
Continental Circuits, we will unite the efforts of two of the stronger and
more technologically advanced interconnect manufacturers in North America. The
companies will have the opportunity to continue their research and technology
development together, which will help Hadco better serve the combined customer
base. In addition, we believe Hadco represents an excellent opportunity for
our employees to benefit from the additional growth prospects in the
electronics industry."
Headquartered in Phoenix, AZ Continental Circuits manufacturers complex
multilayer printed circuits. Markets served include original equipment
manufacturers and contract assemblers in the computer, communications,
instrumentation and industrial control industries.
Hadco is the largest manufacturer of advanced electronic interconnect
products in North America. The Company offers a wide array of sophisticated
manufacturing, engineering and systems integration services to meet its
customers electronic interconnect needs. The Company's principal products are
complex multilayer rigid printed circuits and backplane assemblies. Hadco
provides customers with a range of products and services that includes
development, design, quick-turn prototype, pre-production, volume products,
and backplane assembly. Hadco's customers are a diverse group of original
equipment manufacturers and contract manufacturers in the computing (mainly
workstations, servers, mainframes, storage and notebooks), data communications
/ telecommunications and industrial automation industries, including process
controls, automotive, medical and instrumentation. The Company operates ten
facilities, with nine facilities in the United States and one facility in
Malaysia.
Except for the historical information contained in this press release
(including pricing, net revenue, net income, and operating expectations) there
may be forward looking statements that involve risks and uncertainties.
Factors that could cause actual results to differ materially from forward
looking statements include, but are not limited to, general economic
conditions, business conditions in the electronics industry, demand for the
company's products, and other risks and uncertainties described in reports and
other documents filed by the company from time to time with the Securities and
Exchange Commission.
A conference call will take place at 10:00 a.m. EST on February 17, 1998.
Dial-in number is 415-904-7331. Replay will be available until 11:00 a.m. EST
on February 19,1998 by calling 1-800-633-8284 with the reservation number
379 8064.
Hadco Corporation's press releases are available through Company News On-
Call by fax at 800-758-5804, PIN #390325, or on the Internet at
hadci.com:8080/
SOURCE HADCO Corporation
-0- 2/17/98
/CONTACT: Timothy P. Losik, Vice President and Chief Financial Officer of
HADCO, 603-898-8000, tlosik@hadco.com/
Companies or Securities discussed in this article:
Symbol
Name
NASDAQ:HDCO
Hadco Corp
NASDAQ:CCIR
Contl Circuits |
