Electronics manufacturing services (EMS) provider Flextronics will acquire Mirror Controls International (MCi) for $494 million from a private equity firm in an all-cash deal. The acquisition is an effort by Flextronics to boost its manufacturing offerings to the automotive industry.
MCi manufactures glass and power fold actuators used by the auto industry. The company generated sales totaling $216 million over the past 12 months and its revenue historically has grown 20% per year. The company is based in Woerden, the Netherlands, and has manufacturing facilities in Ireland, China and Mexico.
Mike McNamara, Flextronics CEO, says the acquisition is in line with Flextronics' strategy to identify and acquire companies that have technologies that deliver innovative solutions to customers in industries that have long and stable product life cycles.
He adds the acquisition of MCi will enhance Flextronics automotive offerings and drive differentiation for Flextronics across multiple industries.
Chris Obey, president of Flextronics' automotive division, says that MCi has “best-in-class engineering capabilities and product portfolio.” He adds that Flextronics will leverage MCi's mirror actuator technology across the EMS provider's automotive business and other market segments.
Mark van der Spek, MCi CEO, says Flextronics' vertical integration capabilities, global scale and supply chain capabilities will allow MCi to continue to provide best-in-class products and sustain market leadership.
Additional terms of the deal were not disclosed. The acquisition is subject to customary closing conditions, including regulatory approvals.
Flextronics, based in Singapore, intends to fund the acquisition from currently available resources. Flextronics is purchasing MCi from Egeria, a private equity in the Netherlands.
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