Flextronics International announces agreement for merger with Kyrel EMS Oyj

Flextronics International announces agreement for merger with Kyrel EMS Oyj

Keywords Flextronics, Kyrel, Merger

Flextronics International Ltd has announced an agreement to acquire the Finnish contract manufacturer Kyrel EMS Oyj. Kyrel has provided Electronics Manufacturing Services (EMS) since 1983, and has strong, long-established relationships with key customers in the telecom industry, including Nokia and Alcatel.

Kyrel has two operations in Finland and one in Luneville, France. The company employs approximately 900 people and 1998 revenues were $230 million. This transaction will be accounted under US GAAP as a pooling-of-interests. Flextronics expects to issue approximately 1.9 million shares in the merger. Government approval is required in Finland and the transaction is expected to close in the quarter ending September 24 1999. A one-time charge of $3.0 to $3.5 million is anticipated in that quarter.