Jabil Signs Letter of Intent to Acquire Repair Services Operation
6 July 1999
St. Petersburg, FL
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 OEMs 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
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 http://www.jabil.com.
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 employs approximately 2,500 employees in nine facilities in the U.S.
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.
This 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 contract manufacturing industry and the general economy; variability of operating results; dependence on a limited number of customers; limited availability of components; dependence on 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.