Flex To Sell Multek's China Operations To Multi-Fineline Electronix For $273 Mln

(RTTNews) - Flex Ltd. (FLEX) said it has entered into an agreement with Multi-Fineline Electronix Inc. or MFLEX, a wholly-owned subsidiary of Suzhou Dongshan Precision Manufacturing Co., Ltd or DSBJ, to divest the China-based operations of Flex's subsidiary, Multek.

Multek is a value-add manufacturer of printed circuit board technologies, including high density interconnect, multilayer, flexible circuit and assembly solutions. MFLEX is a provider of technologically advanced flexible printed circuits and assemblies to the consumer electronics industry.

According to the terms of the agreement, upon closing, MFLEX will acquire all of the equity interests in the non-U.S. subsidiaries of Flex that operate the China-based business of Multek, for proceeds of about $273 million, net of cash.

Multek will continue to operate with its current name and location in Zhuhai, China. The U.S.-based Multek operation will remain a wholly owned Flex subsidiary.

The transaction is expected to close in the third quarter of calendar year 2018 and is subject to customary closing conditions, including regulatory approvals.