Printer Friendly

SMTC Acquires Contract Manufacturer MC Assembly Holdings for USD 65m.

M2 EQUITYBITES-November 15, 2018-SMTC Acquires Contract Manufacturer MC Assembly Holdings for USD 65m

(C)2018 M2 COMMUNICATIONS http://www.m2.com

15 November 2018 - Canada-based electronics manufacturing services provider SMTC Corp. (NASDAQ: SMTX) has acquired all outstanding shares of Florida, US-based contract manufacturer MC Assembly Holdings, Inc. for USD 65m, the company said.

Under terms of the transaction, sellers are eligible to earn up to an additional USD 5.0m of consideration, contingent upon the performance of MC Assembly for the 12 calendar months ending March 31, 2019.

SMTC secured a new USD 45m asset based revolving line facility from PNC Bank, of which USD 22m was drawn at closing.

Additionally, TCW Direct Lending LLC provided SMTC with a senior secured loan facility in the amount of USD 67m, of which USD 62m was drawn at closing, with USD 5m available on a delayed draw basis. At closing, SMTC's existing bank indebtedness of USD 27m was repaid.

The proceeds of a new debt financing package, in combination with cash from SMTC's balance sheet, funded the transaction and related fees and expenses.

SMTC said the acquisition of MC Assembly unites two highly complementary EMS companies. This accretive acquisition provides the opportunity to create significant value for shareholders and offers strong benefits for customers of both companies.

The combined company will operate under the name SMTC Corp. and currently plans to continue to operate and maintain the existing facilities operated by each company.

((Comments on this story may be sent to info@m2.com))

COPYRIGHT 2018 Normans Media Ltd.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2018 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:M2 EquityBites (EQB)
Date:Nov 15, 2018
Words:252
Previous Article:Superior National Bank and Trust names VP.
Next Article:Skyhunter Outfitters Acquires over 200,000 Acres for Helicopter Hog Hunting Near Dallas, Texas.

Terms of use | Privacy policy | Copyright © 2022 Farlex, Inc. | Feedback | For webmasters |