Kontron AG To Transfer KDMS Production To Plexus Corp

Kontron AG will transition all manufacturing of its Kontron Design Manufacturing Services (M) Sdn. Bhd. subsidiary located in Penang, Malaysia to Plexus Corp., primarily to its Penang facilities.

AsianScientist (Jan. 6, 2012) – Plexus Corp. and Kontron AG today announced their intention to enter into a strategic manufacturing arrangement.

Under this proposed arrangement Kontron AG will transition all manufacturing of its Kontron Design Manufacturing Services (M) Sdn. Bhd. subsidiary (KDMS) located in Penang, Malaysia to Plexus Corp., primarily to its Penang facilities.

Plexus would acquire the inventory and equipment of KDMS, hire substantially all KDMS employees and pay a modest premium; in exchange Kontron would commit to approximately US$100 million of incremental revenue annually for two years.

No real estate is included in this proposed transaction. The arrangement is subject to entry into a definitive agreement, which is anticipated over the next few weeks and expected to provide for total consideration of approximately $30 – 35 million for the assets to be transferred.

“Kontron is a global leader in embedded computing technology and a strong partner for Plexus in our Industrial/Commercial market sector,” said Dean Foate, Plexus President and CEO.

“In fiscal 2012 this arrangement is expected to add an incremental $50-75 million of revenue for Plexus, based on specified volumes from Kontron, and be modestly accretive to EPS,” he said.

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Source: Plexus Corp.
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