SANTA ANA, CA – TTM Technologies has agreed to divest its four China manufacturing plants comprising substantially all the assets of its Mobility business unit as a separate enterprise for $550 million in cash consideration.
The Buyer is AKMMeadville Electronics (Xiamen) Co., a Chinese consortium consisting of Meizhi Investment (Xiamen) Co., Xiamen Semiconductor Investment Group, AKM Electronics Industrial (Panyu) and Anmei Ventures (Xiamen).
The sale does not include certain accounts receivable of the divested business, estimated to be $110 million in cash receivable to TTM.
“After years of double-digit growth, the cellular market has matured, resulting in lower growth rates,” said Tom Edman, CEO of TTM. “However, this market still demands substantial investment and capital commitments. In addition, the cellular market is highly seasonal and is driven by short-term product cycles. The combination of these trends posed increasing challenges to our strategic direction and desired business model. We are pleased to have found a buyer we believe is strategically committed to cellular market leadership, growing the Mobility business and supporting the customers and the approximately 7,500 employees that support this business. We expect after the transaction is complete, the remaining TTM business should be less seasonal and more exposed to longer cycle markets that fit our strategic direction. We remain excited about the anticipated growth opportunities in 5G base stations, cloud data centers, aerospace and defense electronics, and increasing automotive electronic content.”
In the twelve months ended Sept. 30, the Mobility business unit generated revenues of $528 million, non-GAAP operating income of $5.5 million and adjusted EBITDA of $82.5 million.