TTM Technologies, Inc., a major global PCB manufacturer, has signed a letter of intent with its minority partner, Shengyi Technology Co. Ltd. (Sytech), to dispose of TTM's 70.2% equity interest in the SYE plant and to acquire Sytech's 20% equity interest in the DMC plant. Both the SYE and DMC plants manufacture conventional PCBs and are located in Dongguan, China.
Subject to conclusion of a formal sale and purchase agreement between the parties, the transaction is expected to close by the end of the second quarter of 2013. A condition for closing is that the parties value all of SYE at 1 billion RMB (about $161 million) and all of DMC at 900 million RMB (about $145 million).
"In our Asia Pacific operating segment, we see the strongest growth prospects and customer demand for our advanced technology PCBs," said Kent Alder, CEO of TTM. "When completed, this transaction will reduce our footprint for conventional PCBs in Asia Pacific and should help improve our capacity utilization."
TTM Technologies, Inc. is a major global PCB manufacturer, focusing on quick-turn and technologically-advanced PCBs and the backplane and sub-system assembly business. TTM stands for time-to-market, representing how the company's time-critical, one-stop manufacturing services enable customers to shorten the time required to develop new products and bring them to market. Additional information can be found at www.ttmtech.com.