Included in the acquisition are MCMS' 16,000-sf San Jose, CA headquarters, which is in the planning stages of a 35,000-sf expansion (MSL officials would not comment on whether those plans would proceed) and a 216,000-sf industrial facility in Nampa, ID. Overseas assets included in the agreement include 110,000 sf of manufacturing space in Durham, NC; an 112,000-sf plant in Monterrey, Mexico; a 120,000-sf industrial facility in Penang, Malaysia and a recently opened 20,000-sf plant in Xiamen, China. A 91,500-sf manufacturing space in Colfontaine, Belgium is not part of the sale and will operate as a separate entity.
According to MSL spokesman Stephen Schultz, the acquisition dovetails with the firm's long-stated goal of acquiring a low-cost North American facility. "Back in January we were saying that we're interested in acquiring an operation in Mexico. We need to have a low-cost North American operation and we've been doing a fair amount of work to find the right opportunity."
The buy also strengthens MSL's already established Asian presence. "This ultimately solves our problems of achieving high-quality capacity in China and Malaysia," Schultz tells GlobeSt.com. "We already have facilities there but this will add to that capacity."
Shultz says the "high-quality engineers and high-quality, experienced staff" at the Nampa, ID facility will also enhance MSL's operation. He would not comment on how much employee overlap the acquisition will cause or whether any layoffs are planned. MSL currently has five US locations as well as facilities in Ireland, Malaysia, China, Singapore and Spain.
The transaction is subject to approval by the Bankruptcy Court supervising the Chapter 11 case for MCMS, which was filed Tuesday. Officials from both firms confirm the sale, which is expected to be completed by November barring any other favorable offers made during the 45-day approval process. MSL will continue to operate while the transaction is under way. Both firms provide advanced electronics manufacturing services to original equipment manufacturers in the data communications, telecommunications and computer/memory module industries.
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