Amphenol Corp. (APH) said it has agreed to pay nearly $1.3 billion for FCI Asia Pte Ltd. in furtherance of plans to deepen its offerings to OEMs in the telecommunication, datacom, wireless and industrial markets.
The planned acquisition is also expected to increase Amphenol’s share of the connector and cable assembly market in Asia, building on FCI’s presence in the region, while boosting sales in the fast-growing data-communications segment, according to company executives.
“FCI has enormous technological capabilities in the development of high-speed, input-output, power and miniaturized interconnect products,” said R. Adam Norwitt, president and CEO of Amphenol, in a statement announcing the transaction. FCI’s strong offering will allow us to deliver a much wider range of high technology solutions to our respective customers in a broad array of end markets. In addition, we are excited about the possibilities created by the combination of Amphenol’s strong operating discipline and FCI’s advanced technologies and look forward to working together with FCI’s experienced management team to drive superior operating performance in the future.”
Amphenol said it will fund the acquisition through a combination of available cash and new debts. The company reported $1.35 billion in cash and short-term investments at the end of the first quarter.
Singapore-based FCI has annual sales of approximately $600 million and is owned by investment firm Bain Capital. The company employs nearly 7,500 people globally and has manufacturing and sales offices in major parts of the globe. Its products include backplane, power solutions, board/wire to board connectors, cable assemblies and terminal blocks.
A breakdown of FCI’s annual revenue shows about 70 percent of its sales were generated in the latest fiscal year from the data-communications market while consumer electronics contributed 10 percent, I&I 16 percent and automotive 4 percent. The company generates more than two-thirds of its sales in Asia-Pacific while the Americas contribute 11 percent and the rest of the world 17 percent.
Amphenol said it expects to conclude the transaction this year although it is subject to regulatory approvals as well as the consent of FCI’s worker councils.