Flextronics International Ltd. said it will pay $494 million for Mirror Controls International to broaden its offerings and services to automotive manufacturers. The acquisition of the supplier of mirror actuators to the automotive industry will further help Flextronics smoothen sales growth and reduce its dependence on markets susceptible to wild demand swings, according to company executives.
“Our M&A strategy remains focused on identifying and acquiring technologies that deliver innovative solutions to our customers in companies that have longer and stable product life cycles,” said Mike McNamara, CEO of Flextronics in a statement. “MCi is an excellent example of a highly strategic acquisition that will directly enhance our automotive offering and benefit our overall capabilities platform while driving new offerings and differentiation across multiple industries.”
Flextronics has been expanding offerings to various segments of the manufacturing economy in an attempt to secure steady growth and increase sales from a wider customer base. The acquisition of Mirror Controls gives it the opportunity to become a stronger partner to automotive manufacturers in Europe, North America and Asia. Mirror Controls’ products can also be extended into new markets, according to Flextronics.
“Flextronics has the most comprehensive end-to-end supply chain solutions serving the automotive industry today. Upon completion, the acquisition of MCi will further expand our solutions offering with expertise that addresses the key technology trends in automobile electronics,” said Chris Obey, president of Flextronics Automotive, a division of the contract manufacturer. “We look forward to combining MCi’s leading component and platform capabilities and leveraging their world-class actuator technology across our automotive business and other market segments.”
Mirror Controls is based in Woerden in the Netherlands but it makes most of its products in China and Mexico. The company also has a manufacturing facility in Ireland and has annual sales of approximately 200 million euro ($216 million).
Flextronics said it expects to fund the transaction from available resources.