Flextronics to Acquire Motorola Mobility's China and Brazil Sites PDF Print E-mail
Written by Mike Buetow   
Tuesday, 11 December 2012 10:42

SAN JOSE -- Flextronics will acquire Motorola Mobility's manufacturing operations in Tianjin, China, and management and operation of its Jaguariuna, Brazil, facility for $75 million.

Employees and assets at both locations will transfer to Flextronics after the transaction closes.

It is Flextronics' second major acquisition in two weeks. On Dec. 4, the EMS company acquired Saturn Electronics & Engineering.

The Motorola agreement also includes a manufacturing and services agreement for Android and other mobile devices. The companies expect to close by the first half of 2013, subject to customary closing conditions including regulatory approvals. Flextronics will pay $75 million for the units, which are expected to generate some $2 billion in new revenue for the EMS firm. Flextronics expects the transaction to be accretive to EPS and operating margins in its fiscal 2014, which begins in March next year.

"We are very pleased to announce today's agreement and expand our long-standing collaborative and successful relationship with Motorola Mobility," said Mike McNamara, chief executive, Flextronics. "We look forward to leveraging our extensive manufacturing expertise and supply chain solutions to provide Motorola Mobility with increased value."

"The agreement with Flextronics is an important step forward for us in transforming our overall supply chain into a competitive advantage for Motorola Mobility. Flextronics has been our partner for many years, and their expertise and experience in manufacturing will enable us to focus on other areas of the supply chain where we can add the most value," said Mark Randall, senior vice president, supply-chain and operations for Motorola Mobility.


Last Updated on Tuesday, 11 December 2012 14:17


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