Midtier contract electronics manufacturers ACT Manufacturing Inc. and CMC Industries have completed their proposed merger, creating a potential new top-tier company.
Revenue for the two companies for the past 12 months, had they been combined, would have been approximately $580 million, and revenue for the merged company could reach $800 million next year, according to industry analysts.
Under terms of the agreement, each share of Santa Clara, Calif.-based CMC is being exchanged for a half-share of Hudson, Mass.-based ACT's common stock. The combined company will operate under the ACT name, and will have nearly 1 million square feet of manufacturing capacity.
"Our merger with CMC is a landmark achievement, and we are exceptionally pleased that both ACT and CMC shareholders were enthusiastic about the significant opportunity created by the combined strengths of both companies," said John A. Pino, chief executive of ACT.
In addition to its Massachusetts headquarters, ACT has manufacturing operations in Atlanta and Dublin, Ireland. MCM has manufacturing plants in Santa Clara; Corinth, Miss.; and Hermosillo, Mexico.