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USI Intends to Acquire Asteelflash, Europe's Second-Largest EMS Company, to Accelerate Its Global Expansion

  • Friday, December 13, 2019, 7:00 pm
  • ACROFAN=PRNasia
  • hkcs@prnasia.com

SHANGHAI and PARIS, Dec. 13, 2019 /PRNewswire/ -- Universal Scientific Industrial (Shanghai) Co., Ltd. (hereinafter referred to as "USI") (SSE:601231), a leading electronics designer and manufacturer, formally announced its intension to enter into the Equity Acquisition Agreement with the shareholders of Asteelflash, the second largest EMS company in Europe. It intends to acquire 100% equity of Asteelflash for 450 million US dollars, of which 89.6% is paid in cash, 10.4% is paid by issuing shares of USI to privately owned company of Asteelflash's founder (i.e. equity swap). The transaction is subject to approval by the relevant competent authorities.


USI Intends to Acquire Asteelflash to Accelerate Its Global Expansion
USI Intends to Acquire Asteelflash to Accelerate Its Global Expansion


Asteelflash, a privately owned company, will become an important subsidiary of USI after the closing of the transaction, with existing operation and management team keeping unchanged. Meanwhile, leveraging global scale of operation and manufacturing, branding and service capabilities of USI, Asteelflash aims to capture more opportunities to increase big orders of major clients, and accelerate its business growth and expansion. Asteelflash and USI will create value through their complementary geographical footprint, target end market segments, customers, business models and technological capabilities.


In the context of heightened trade frictions on global markets, USI's move to acquire Asteelflash implies that it can provide a more diverse range of production bases for its clients, including cost competitive ones in North Africa (Tunisia), Eastern Europe (the Czech Republic and Poland) and North America (Mexico), and those in Europe (France, Germany and the UK) and North America (Silicon Valley, USA) allowing efficient communication and geographical facilitation with customers sharing the same language and culture, as well as original production and supply systems based in Asia, such as mainland China and Taiwan.


With revenues of around US$ 1 billion, Asteelflash serves more than 200 clients, and is dedicated to meeting their requirements for small batch and diversification. Following the acquisition, it will help to optimize USI's current customer base and further balance client distribution and revenue composition. In the future, USI and Asteelflash are expected to meet the needs of a much wider range of clients, taking into account different requirements of customers at different stages of product development, such as quick-turn manufacturing and design feedbacks in the early stage of product development for small volume, or rigid requirements for mature products at the mass production stage in terms of production stability and lead time.


Since 2018, USI has been expanding its global presence with a global perspective and explicit development strategy of "modularization, diversification and globalization". Apart from expanding production in Taiwan, Mexico, and Guangdong of China, USI has completed a series of strategic investments, including acquiring production base in Poland, establishing a joint venture with Qualcomm in Brazil and with Sugon in mainland China, investing in PHI Fund, and engaging in the privatization of Memtech, a listed company in Singapore. The acquisition of Asteelflash will significantly strengthen USI's mix of manufacturing locations and capabilities across the globe, augment its globalized and highly-skilled workforce, secure its position in Europe and expand its customer base of EMS business.


"Under the trend of future industrial fragmentation, product diversification and service regionalization, the accelerated application of 5G, Internet of Things (IoT), AI, cutting-edge computing and other technologies entails flexible EMS manufacturers with global presence," said Jeffrey Chen, Chairman of USI. "USI's partnership with Asteelflash will make USI into a bigger platform with enhanced manufacturing know-how, extended global reach and more resources for R&D in cutting edge technologies. USI is a proven leader in the global EMS space, and together with Asteelflash and its team, we will continue to operate a world-class platform, better serve our customers, and expand into high-growth end markets, such as automotive, medica augment l and industrial markets. This is another milestone in USI's global development, and we will grow around the development strategy of 'modularization, diversification and globalization', to seek for strategic opportunities, to increase our competitive leadership and to become an influential leader in the sector!"


"USI stands on a solid basis in both expertise and experience in manufacturing, design and automation, which are of tremendous value for our further development and continued improvement. We will make the most of USI's capabilities to capture opportunities from different segments. From design services to product system assemblies, Asteelflash looks forward to growing together with USI to provide global customers with top-notch services and world-class quality," said Gilles Benhamou, CEO of Asteelflash.


About USI


USI (SSE: 601231), Universal Scientific Industrial (Shanghai) Co., Ltd., is a world-leading SiP (System in Package) manufacturing company. With a history of 43 years since its founding in 1976, USI offers customer diversified products in the sectors of wireless communication, computer and storage, consumer, industrial, and automotive electronics. It operates 10 production bases in mainland China, Taiwan, Mexico and Poland, and has approximately 18,000 employees worldwide. In 2018, its revenue reached approximately US$5 billion, ranking 8th and 16th in the global EMS and CM (Contract Manufacture) sectors respectively. For more information, please visit www.usiglobal.com.


About Asteelflash


Asteelflash is a global electronic manufacturing service company dedicated to segments such as automotive, energy management, the Internet of Things (IoT), industrial and data processing. Asteelflash recorded revenue of around US$1 billion in 2018, ranking 20th (MMI, 2019.04) in the global EMS industry and being the second largest EMS company in Europe. The Company, formerly known as Asteel, was founded by Mr. Gilles Benhamou in France in 1999, and changed its name to Asteelflash Group after its acquisition of Flash Electronics in 2008. Through continuous mergers and acquisitions from 1999 to 2016, it is now an influential company with 17 production bases in 8 countries, including France, Germany, the UK, the Czech Republic, China, Tunisia, the United States and Mexico, employing approximately 6,000 employees worldwide, and boasts unique regional experience and rapid manufacturing capabilities in the Europe, the Middle East, and Africa (EMEA). Asteelflash serves more than 200 clients worldwide, with most of its revenue and earnings derived from consumer electronics, energy management, cloud computing, industrial and automotive sectors. For more information, please visit www.asteelflash.com.


USI IR Contact


Sherry Wang
+86-21-5896-6996 #82659
public@usiglobal.com


USI Media Contact


Polly Wen
+86-21-5896-6996 #82277
pr@usiglobal.com


Asteelflash Media Contact


Tiphanie Picard
+33 01 49 44 53 00 #8176
info@asteelflash.com


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Related Links :


www.usiglobal.com