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Sanmina, which provides design and manufacturing solutions to original equipment manufacturers in the communication, medical, industrial instrumentation, and high-end computer sectors, has a backplane and electronics assembly plant in Dublin and a customer services facility in Limerick. It employs 235 people in Ireland with the bulk of the jobs being in its Dublin operation.
SCI Systems has a plant in Fermoy in Cork, which is primarily focused on electronic assemblies and sub-assemblies. Employee numbers in Cork were not available from the company.
According to Mike Landy, president, Sanmina Europe, it is not yet known if there will be job losses in Ireland as a result of the merger. "Everything will have to be revisited. Because we are bringing together two large companies all of our operations will have to be examined. This will obviously take time and any real answer on job cuts would be premature," Landy told ElectricNews.Net
Under the deal, each outstanding share of SCI common stock will be converted into 1.36 shares of Sanmina common stock. Based on Sanmina's closing prices of USD22.14 on Friday, the transaction is valued at USD30.11 per share of SCI common stock or approximately USD6 billion, including the assumption of debt. Sanmina is on the Nasdaq, while SCI is traded on the New York Stock Exchange.
The transaction, which is subject to the approval of the stockholders of both companies and certain US and international regulatory authorities, is expected to close either late in Sanmina's fiscal fourth quarter or at the beginning of its first fiscal quarter of 2002, subject to the completion of the regulatory review.
The merger creates a company with over USD14 billion in revenue and approximately 100 manufacturing facilities on over 20 countries. According to the companies, the merger is expected to yield USD100 million to USD150 million from cost savings and from leveraging vertical integration capabilities.
According to both companies, benefits of the merger include enhanced global order fulfilment capabilities, a diversified, complementary customer base in high growth sectors, and financial strength.
"The merger of our two companies accelerates our goal of building the premier electronic contract manufacturer company in the world," said Jure Sola, Sanmina's chairman and chief executive officer. "We believe the combined company, with its increased ability to provide a total end-to-end solution in all the major technology centres in the world, will successfully meet this challenge and become the preferred partner of the leading original electronics manufacturers in our target sectors."
"With its enhanced global footprint, the combined entity will truly be the only company able to provide original electronics manufacturers with a single source solution for all their electronic contract manufacturer requirements from design engineering and product development, to complete system assembly, integration and test as well as global order fulfilment," commented A. Eugene Sapp, SCI's chairman and chief executive officer.
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