WESTERN DIGITAL SIGNS LETTER OF INTENT TO SELL CORK PLANT TO DOVER ELECTRONICS
WESTERN DIGITAL SIGNS LETTER OF INTENT TO SELL
CORK PLANT TO DOVER ELECTRONICS
IRVINE, Calif., Nov. 8 /PRNewswire/ -- Western Digital Corp. (NYSE: WDC) announced today that it has signed a letter of intent to sell its Cork, Ireland, printed circuit board manufacturing facility to the Dover Electronics Co., a business unit of Dover Corp. (NYSE: DOV). Dover Electronics will pay Western Digital an undisclosed amount for certain assets, land and the 50,000-square- foot facility. The transaction, subject to approval of the WDC and Dover boards as well as the Ireland Development Authority, is expected to close by Dec. 31.
Western Digital's employee population at the Cork facility totals 340, of which approximately 100 are expected to obtain employment at the plant under Dover Electronics' ownership. Western Digital indicated that severance costs associated with those who do not join Dover Electronics will be included in the final accounting of its recently completed LAN business sale to Standard Microsystems Corp. The company said that the financial impact of the sale of the Cork facility to Dover Electronics will not be material.
As part of its business restructuring over the course of the last year, Western Digital has largely exited the board markets it served and emphasized its LSI and disk drive businesses. It already has closed board plants in Puerto Rico and Irvine, and last month sold its local area network adapter board product line to SMC. During the same time frame, it has automated its production of 3.5-inch disk drives at its Singapore assembly plant and increased production in its Irvine-based semiconductor wafer fabrication facility.
Western Digital Corp., headquartered in Irvine, is a multinational company that designs and manufactures semiconductor, subsystem and intelligent drive products for OEMs and resellers which serve the microcomputer industry. The company's storage, video and systems logic products are designed to work in concert, and the resulting Interarchitecture products yield increased system functionality and performance.
/CONTACT: Robert J. Blair of Western Digital, 714-932-7834/
(WDC DOV) CO: Western Digital Corp.; Dover Corp. ST: California IN: CPR SU: TNM CH -- LA009 -- 2544 11/08/91 10:47 EST