Solectron and C-MAC Combine Forces.

Solectron Corp. (Milpitas, CA) and C-MAC (Montreal, Quebec, Canada) announced a definitive agreement under which the companies will combine to create a single diversified designer and manufacturer of integrated electronic manufacturing solutions. The combination with C-MAC is expected to enhance Solectron's systems-solutions offerings and expand the company's portfolio.

The transaction expands Solectron's presence, level of business investment and customer services in Canada. C-MAC has facilities in seven cities in Quebec, Manitoba and Ontario. Solectron has facilities in Calgary, Alberta and Vaughan, Ontario. Dennis Wood, chairman, president and chief executive officer of C-MAC, will chair a to-be-formed committee of Solectron's board focused on selective vertical integration and corporate strategy, and will oversee the integration of the two organizations. Solectron will invite a second current C-MAC board member to join the Solectron board of directors.

Under the terms of the agreement, Solectron will issue 1.755 shares of Solectron common stock in exchange for each C-MAC common share outstanding. As a result of the transaction, Solectron said it expects to generate an estimated $60 to $120 million in synergies through cost savings and revenue opportunities. The transaction should be completed by the end of the year.

http://www.circuitsassembly.com/

Copyright [copyright] 2001 CMP Media LLC