Ad-Hoc: Kontron AG intends to transfer Malaysia production to Plexus Corp., USA
Increased focus on higher-margin business
Improved working capital
One-off effects from transaction will be charged to 2011 annual results
Eching near Munich, January 5th, 2012. Kontron AG (FWB:KBC) has signed today a term sheet with Plexus Corp. (NASDAQ:PLXS) in its continued effort of migrating towards higher-margin business of systems and customer-specific solutions. The structure for the contemplated transaction is an asset transaction in which assets of Kontron Design Manufacturing Services (KDMS), a wholly owned Kontron AG subsidiary based in Penang, Malaysia, will be transferred to Plexus Corp. for a purchase price of approximately USD 30 - 35 million. The closing of the transaction is expected in the next few weeks.
This transaction will result in an increase of flexible working capital for Kontron. The agreement also allows Kontron to benefit from the purchasing advantage of Plexus Corp. as the company plans to procure, in addition to existing business, around USD 100 million worth of modules per year.
One-off expense of approximately six million Euro is expected to be incurred in the fourth quarter of 2011 as part of this transaction. Due to these one-off effects, the planned 8% EBIT margin for 2011 can no longer be achieved. Full-year revenue for 2011 will prospectively be in the range of expectations.
Kontron expects from this transaction for 2012 modestly accretive EPS, improved working capital, reduced capital expenditures and significant increased sales per employee.
Gaby Moldan / Jacqueline von Berg
Tel: 08165/77212, Fax 08165/77222
Email: Gaby.Moldan@kontron.com or Jacqueline.vonBerg@kontron.com
For further Information:
Florian Bergmann/ Bettina König
Engel & Zimmermann AG
Agentur für Wirtschaftskommunikation
Schloss Fußberg, Am Schlosspark 15,
Tel: 089-89 35 633, Fax: 089-89 39 84 29
Email: email@example.com or firstname.lastname@example.org