MANHASSET, N.Y. Printed circuit board supplier Merix Corp. announced Thursday (April 14) it has signed a definitive agreement to acquire the operations of pc board maker Eastern Pacific Circuits Limited (EPC), based in Hong Kong, for $120 million in cash.
Merix (Forest Grove, Ore.), which manufactures advanced, multilayer rigid boards, expects to strengthen its Far East presence by acquiring EPC, a low-cost, mid-to-high volume board supplier.
EPC operates four plants in southern China and one in Hong Kong totaling 869,000 sq. ft. of manufacturing space. The company has high volume capabilities up to 18 layers and operates sales and customer service offices in the U.S., Canada, U.K., China, Singapore and Hong Kong.
For the fiscal year ended Dec. 31, 2004, EPC's preliminary unaudited sales were $143.0 million and adjusted EBITDA was $14.1 million.
The transaction, which includes earn-out consideration of up to $8.0 million based on calendar 2005 adjusted EBITDA, is expected to close June 2005.