Printer Friendly

Jabil Circuit Signs Letter of Intent to Acquire Repair Services Operation.

ST. PETERSBURG, Fla.--(BUSINESS WIRE)--July 6, 1999--

Jabil Circuit, Inc. (NYSE:JBL) today announced it has signed a letter of intent to buy EFTC Corporation's (Nasdaq:EFTC) service and repair business, EFTC Services, Inc.

The business has locations in Memphis, Tennessee; Louisville, Kentucky and Tampa, Florida. The purchase price of approximately $30 million will be paid in cash.

"The repair and warranty service business is a natural extension of our virtual manufacturing model and an enhancement to our total global solution. There is strong interest from our current customer base and this is an excellent opportunity to acquire an experienced and successful capability as a stand alone business," said Timothy L. Main, president, Jabil Circuit, Inc.

"EFTC Services (formerly privately held Circuit Test International) is a recognized industry leader in providing repair and warranty services to global OEM's from strategic logistics hub locations," Main said. "This is a well-run, profitable business with strong management and good symmetry with Jabil's current customer base. We look forward to welcoming the 500 employees to the Jabil family and working with them to expand the business in the years to come."

The transaction is expected to close by August 31, 1999. Following the closing, the acquired operations will continue to offer repair services for existing customers and EFTC customers.

Other financial terms of the proposed transaction were not disclosed.

About Jabil Circuit

Jabil Circuit, Inc. is an electronic manufacturer of circuit board assemblies and systems for communications, personal computers, peripherals, automotive and consumer products. Jabil offers circuit design, board design from schematic, prototype assembly, volume board assembly and system assembly services from automated manufacturing facilities in four U.S locations, Europe, Asia and Mexico. Information about Jabil can be found on the World Wide Web at

About EFTC

EFTC is a provider of high mix electronic manufacturing services. The Company provides services to OEM customers in the aerospace/avionics, medical, instrumentation, computer-related and communications industries. The company is headquartered in Denver, Colorado and employees approximately 2500 employees in nine facilities in the U.S.

This press release contains certain forward-looking statements, which are subject to a number of risks and uncertainties. Some factors that could cause actual results to differ materially include: business conditions and growth in the electronics manufacturing industry and the general economy; variability of operating results; dependence upon a limited number of customers; limited availability of components; dependence upon certain industries; variability of customer requirements and other risk factors described in the Company's most recently filed SEC documents such as the Form 10-K, filed 12/7/98.

This release contains forward-looking statements based on current expectations that involve a number of risks and uncertainties. While the companies have executed a letter of intent, there is no assurance that the parties will close the transaction or that it will be a success. In the event that the companies fail to satisfy conditions for closing, the transaction could terminate. No assurance can be given that the transaction will close.
COPYRIGHT 1999 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1999, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Business Wire
Geographic Code:1USA
Date:Jul 6, 1999
Previous Article:CybeRecord Appoints Kimball as Vice President of Research and Development.
Next Counts Down to the Year 2000 With Interactive Millennium Package.

Related Articles
EFTC Enters Into Letter of Intent to Sell Its Repair Services Business.
Jabil Circuit Signs Letter of Intent to Acquire GET Manufacturing.
Jabil Global Services to Add European Repair and Logistics Services Operation.
Valeo moves capacity to Chihuahua.
Jabil adding 2 Asian plants.
Jabil lands FAA repair certification.
Jabil completing Taiwan Green Point buy.

Terms of use | Privacy policy | Copyright © 2019 Farlex, Inc. | Feedback | For webmasters