May 25, 2001 (NYSE: SLR), the world's leading provider of electronics manufacturing and
supply-chain management services, said today that it has signed a definitive
agreement to acquire Singapore Shinei Sangyo Pte Ltd., a privately held
manufacturer and designer of enclosures for electronics products. Upon
completion of the transaction, Solectron will expand its power, packaging and
cooling capabilities and enhance its systems-solutions offering. The
companies expect to complete the transaction in June of this year.
(Photo: http://www.newscom.com/cgi-bin/prnh/20001201/SLRLOGO )
Following the completion of the transaction, Shinei, which will be renamed
Shinei International, will be an independently operated subsidiary within
Solectron's newly formed Power, Packaging and Cooling unit, and will continue
to market its services to other companies separately. Shinei's customers
currently include Apple Computer, Hewlett-Packard Company and Cisco Systems.
Once the acquisition is completed, Solectron will gain specialized
manufacturing and design capabilities, including custom enclosure design and
prototyping, tooling and metal fabrication, enclosure assembly and top-level
assembly for the server, networking, desktop PC and printer product markets.
Shinei has more than 3,000 employees worldwide and business operations that
include locations in Singapore, Malaysia, China, Scotland and the
United States. Financial terms of the deal were not disclosed.
"We will continue to serve our current customers with the high-quality
design and manufacturing they have come to expect," said P.K. Tan, managing
director, Singapore Shinei Sangyo Pte Ltd. "This acquisition will provide
Shinei access to Solectron's substantial technological capabilities, and will
allow us to provide our custom enclosure capabilities to Solectron customers
needing total systems solutions."
Solectron's Power, Packaging and Cooling unit is led by Sean Tzou,
vice president and general manager/managing director, Power, Packaging and
Cooling. The unit will continue to develop and expand Solectron's
capabilities in enclosure design and manufacturing, backplane assembly, power
supply integration, and engineering -- all fundamental components of
Solectron's full systems-solutions offering. The unit will include Shinei, as
well as Solectron's strategic partnership with Lite-On Enclosure, a leading PC
enclosure supplier that serves Solectron and other customers.
"Shinei has established a strong record for delivering high-quality,
customer-focused results worldwide, and an ability to drive faster product
time-to-market," said Tzou. "Shinei's capabilities will be an important piece
of our end-to-end supply-chain solution."
Solectron said that based on the continual review of its customers' needs,
the time is right to expand its enclosure design and assembly capabilities as
part of a complete systems-solutions offering. Solectron expects to continue
to add capabilities that will enhance its technology expertise, strengthen its
global reach and leverage its business model to better meet customers' needs.
Safe Harbor
This release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1993, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, regarding, among other things,
anticipated benefits of the acquisition, based on current expectations that
involve a number of risks and uncertainties. In particular, while the
companies have signed a definitive agreement, there is no assurance that the
parties will complete the transaction. In the event that the companies do not
receive the necessary approvals or fail to satisfy conditions for closing, the
transaction will terminate. Additional risks and uncertainties include the
failure to achieve expected synergy and efficiencies of operations,
discontinuity of component supply or availability, risk of price fluctuation,
loss of major customers, fluctuations in operating results, changes in
technology, competition, the ability to manage growth, the ability to manage
rapid declines in customer demand, the ability to manage business integration,
risks associated with international sales and operations and the ability to
retain key personnel. For a further list and description of risks and
uncertainties, see the reports filed by Solectron with the Securities and
Exchange Commission, specifically Solectron's forms 8-K, 10-Q, S-3 and 10-K.
About Solectron
Solectron (www.solectron.com), the world's leading supply-chain
facilitator, provides a full range of manufacturing and supply-chain
management services to the world's premier high-tech electronics companies.
Solectron's offerings include new-product design and introduction services,
materials management, high-tech product manufacturing, and product warranty
and end-of-life support. Solectron, based in Milpitas, Calif., is the first
two-time winner of the Malcolm Baldrige National Quality Award for
manufacturing.
CONTACT: Analysts, Phil Kagel, 408-956-7627, or philkagelca.slr.com, or
Media, Robert (Bob) Kula, 408-935-5405, or robertkulaca.slr.com, both of
Solectron Corporation.
