Flextronics Buying 2 Motorola Plants
SINGAPORE and LIBERTYVILLE, Ill. -- Flextronics (FLEX) and Motorola Mobility LLC, owned by Google, announced today that the companies have signed a definitive agreement, under which Flextronics will acquire Motorola's manufacturing operations in Tianjin, China, and will also assume the management and operation of its Jaguariuna, Brazil, facility. Employees and assets at both locations will transfer to Flextronics after the transaction closes. The agreement also includes a manufacturing and services agreement for Android and other mobile devices. The companies expect to complete closing activities by the first half of 2013, subject to customary closing conditions including regulatory approvals. Financial terms of the agreement are not being disclosed.
"We are very pleased to announce today's agreement and expand our long-standing collaborative and successful relationship with Motorola Mobility," said Mike McNamara, chief executive officer, Flextronics. "We look forward to leveraging our extensive manufacturing expertise and supply chain solutions to provide Motorola Mobility with increased value."
"The agreement with Flextronics is an important step forward for us in transforming our overall supply chain into a competitive advantage for Motorola Mobility. Flextronics has been our partner for many years, and their expertise and experience in manufacturing will enable us to focus on other areas of the supply chain where we can add the most value," said Mark Randall, senior vice president, supply-chain and operations for Motorola Mobility LLC.
Flextronics Corp. (Nasdaq: FLEX)