News & events

Ad-Hoc: Kontron AG intends to transfer Malaysia production to Plexus Corp., USA

  • Increased focus on higher-margin business
  • Improved working capital
  • One-off effects from transaction will be charged to 2011 annual results

Eching near Munich, January 5th, 2012. Kontron AG (FWB:KBC) has signed today a term sheet with Plexus Corp. (NASDAQ:PLXS) in its continued effort of migrating towards higher-margin business of systems and customer-specific solutions. The structure for the contemplated transaction is an asset transaction in which assets of Kontron Design Manufacturing Services (KDMS), a wholly owned Kontron AG subsidiary based in Penang, Malaysia, will be transferred to Plexus Corp. for a purchase price of approximately USD 30 - 35 million. The closing of the transaction is expected in the next few weeks.

This transaction will result in an increase of flexible working capital for Kontron. The agreement also allows Kontron to benefit from the purchasing advantage of Plexus Corp. as the company plans to procure, in addition to existing business, around USD 100 million worth of modules per year.

One-off expense of approximately six million Euro is expected to be incurred in the fourth quarter of 2011 as part of this transaction. Due to these one-off effects, the planned 8% EBIT margin for 2011 can no longer be achieved. Full-year revenue for 2011 will prospectively be in the range of expectations.

Kontron expects from this transaction for 2012 modestly accretive EPS, improved working capital, reduced capital expenditures and significant increased sales per employee.


Investor Relations:
Gaby Moldan / Jacqueline von Berg
Kontron AG
Oskar-von-Miller-Str. 1
85386 Eching
Tel: 08165/77212, Fax 08165/77222
Email: Gaby.Moldan@kontron.com or Jacqueline.vonBerg@kontron.com

For further Information:
Florian Bergmann/ Bettina König
Engel & Zimmermann AG
Agentur für Wirtschaftskommunikation
Schloss Fußberg, Am Schlosspark 15,
82131 Gauting
Tel: 089-89 35 633, Fax: 089-89 39 84 29
Email: f.bergmann@engel-zimmermann.de or b.koenig@engel-zimmermann.de

Contact our sales team to learn more about this product family and about product customization by contacting us at:

Kontron America Sales
Phone: 888-294-4558
Email: sales@us.kontron.com

Contact our support team for any technical inquiries by contacting us at:

Kontron America Support
Phone: 800-480-0044
Email: support@us.kontron.com

Media Contacts

Europe, Middle East and Africa

Daniel Piper
Kontron
Tel: +49 (0) 40-20 00 90-0
daniel.piper@kontron.com

Martin Farjah
Tel: +49 (0) 531 387 33 22
kontron@profil-marketing.com

North America

Justine Johnson
Kontron
Tel: +1 858 677 .0877
justine.johnson@kontron.com

Annette Keller
Keller Communications
Tel: +1 (707) 947-7232
annettekeller@sbcglobal.net

Asia Pacific

Richard Pugnier
Kontron
Tel: +1 858.677 .0877
richard.pugnier@kontron.com