SMTC Corp. and MC…
SMTC Corp. and MC Assembly Holding announced that SMTC has acquired all outstanding shares of MC Assembly. The purchase price at closing was $65M, subject to certain adjustments. Additionally, the sellers are eligible to earn up to an additional $5M of consideration, contingent upon the performance of MC Assembly for the twelve calendar months ending March 31, 2019. The acquisition results in a combined company with consolidated results for the twelve months ended September 30, of approximately $323M in revenue and approximately $18M of adjusted EBITDA. The consolidated results do not reflect the potential cost savings available from the combination of the two companies. Management teams of both companies have worked collaboratively to identify $6M+ of annual cost reduction opportunities from purchasing and operational advantages and corporate and shared services redundancies that the combined company expects to implement during 2019 at a non-recurring cost of approximately $3M. The combined company will operate under the name SMTC Corporation and currently plans to continue to operate and maintain the existing facilities operated by each company. The proceeds of a new debt financing package, in combination with cash from SMTC's balance sheet, funded the transaction and related fees and expenses.
