Flextronics has made an offer to acquire NatSteel Broadway. The offer, priced at S$3.23 cash per share, equates to a deal value of about S$653 million (approximately USD$364 million based on today’s exchange rate) for all of the outstanding shares of NatSteel Broadway.
NatSteel Broadway’s operations include manufacturing facilities with more than two million square feet in China and one smaller operation in Hungary.
The acquisition strengthens Flextronics’ manufacturing presence in China. In addition, the integration of NatSteel Broadway’s extensive toolmaking, plastic moulding and electronics manufacturing capabilities further enhances Flextronics’ supply chain offerings.
NatSteel Broadway is one of Asia’s leading suppliers of plastics and metal components, tool design and fabrication, and PCB assembly. The company serves customers in the consumer electronics, automotive, computer peripherals and office equipment industries.
NatSteel Broadway had revenues of approximately USD$188 million for the fiscal year ended December 2001. Through the acquisition of NatSteel Broadway’s facilities, Flextronics intends to continue the manufacturing of electronics products for NatSteel Broadway’s existing customers, including companies such as Funai, Philips and LGE.