Flextronics to expand medical capabilities through acquisition of Avail
Aug 31, 2007
Flextronics (Nasdaq: FLEX) and Avail Medical Products, Inc., announced that the two companies have entered into a definitive agreement for Flextronics to acquire Avail.
The addition of Avail's medical design, manufacturing and logistics capabilities for disposable medical device products and the leading medical capabilities afforded by the pending Solectron acquisition will significantly broaden Flextronics Medical segment's offerings, and establish Flextronics as a leading supplier and partner for the medical industry.
"When our core medical business is combined with the capabilities of Avail and the services that we will add from the pending Solectron acquisition, Flextronics Medical will increase the range of services it offers customers to include design, manufacturing and logistics of disposable medical devices, hand held diagnostics and drug delivery devices and imaging, lab and life sciences equipment," said Dan Croteau, president of Flextronics Medical. "Not only will we have one of the broadest ranges of capabilities in the medical industry, this strategic combination of world-class resources demonstrates our commitment to providing our medical customers with an unmatched level of global capabilities."
"The combination of Avail and Flextronics Medical will allow us to build upon our combined global manufacturing footprint and supply chain organization to provide customers with the services they require to sustain a competitive edge in the global marketplace for complex medical products," said J. Randall Keene, president and chief executive officer of Avail. "Together, we will also have the ability to accelerate product development and simplify customer supply chains by building upon Flextronics's advanced electronics capabilities and adding the disposable medical device experience of Avail."
Avail is expected to generate approximately $250 million of sales in calendar 2007 from a product portfolio that consists of disposable medical products that includes catheters, wound management and drug delivery devices. The acquisition is expected to close before the end of the calendar year and it is expected that this acquisition will be neutral to the diluted earnings per share guidance for all periods previously provided by Flextronics. Additional terms of the deal were not disclosed.