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SMTC Corporation Acquires MC Assembly Holdings, Inc. in Transformative Transaction

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Combination Creates Preeminent Low-to-Medium Volume, High Mix Electronics Manufacturing Services (EMS) Provider with more than $320 Million of Combined Revenue for the Twelve-Month Period Ended September 30, 2018 TORONTO, Nov. 09, 2018 (GLOBE NEWSWIRE) — SMTC Corporation (Nasdaq:SMTX), a global electronics manufacturing services provider, and MC Assembly Holdings, Inc. (MC Assembly), a leader in the contract electronics manufacturing industry, today announced that SMTC has acquired all outstanding shares of MC Assembly. The purchase price at closing was $65 million, subject to certain adjustments. Additionally, the sellers are eligible to earn up to an additional $5 million of consideration, contingent upon the performance of MC Assembly for the twelve calendar months ending March 31, 2019. We are excited to announce the acquisition of MC Assembly which unites two highly complementary EMS companies. This accretive acquisition provides the opportunity to create significant value for our shareholders and offers strong benefits for customers of both companies, said Ed Smith SMTCs Chief Executive Officer, who will continue in that role of the combined company. SMTC and MC Assembly have a common mission, which is to build a world class EMS company that puts customers first. We intend to build upon our respective strengths to drive growth and efficiencies at our facilities from our complementary and diversified customer bases, stated MC Assemblys President and Chief Executive Officer George Moore. Compelling Strategic Rationale SMTC believes the acquisition will provide the following strategic and financial benefits: A stronger company with greater financial resources: In an industry where scale matters, the acquisition creates a powerful, diversified EMS provider with enhanced scale and new growth opportunities. The acquisition results in a combined company with consolidated results for the twelve months …[Read on via official release]

Source: US SEC
View full document: EX-991_of_8-K_for_SMTC_CORP__8-K-11-09-2018