Sanmina-SCI goes China.

SAN JOSE -- Sanmina-SCI Corp. plans to buy Pentex-Schweizer Circuits in an all-cash deal worth about $79 million. The deal is expected to close in Sanmina-SCI's (sanmina-sci.com) fiscal 2004 Q4 or 2005 Q1, pending approval by Pentex-Schweizer shareholders and Singapore court approval. More than 54% of shares in

Pentex-Schweizer have been committed to the sale. Pentex-Schweizer has factories in Wuxi, China and Singapore, with a total of 470,000 sq. ft. of manufacturing space, with another 450,000 sq. ft. available in China. Pentex-Schweizer is the third-largest Singapore-based PCB maker and had sales of $63 million in 2003, according to PCD&M consulting editor Dr. Hayao Nakahara.

Under the agreement, Pentex-Schweizer shareholders can choose to receive S$0.34 or US$0.2006 per share. Pentex-Schweizer will also provide fabrication services to Sanmina SCI during the period prior to closing.

The move establishes Sanmina SCI as a major player in Asia for the first time. The company also runs a board facility in Malaysia, which it acquired via its purchase of Hadco. As reported in PCD&M, Sanmina-SCI executives have been signaling their intent to build their footprint in Asia.

It is not yet known what the move means for Sanmina SCI's plants in North America. The company has been laying off employees at its Owego, NY, facility, and rumors persist about its future.