In what is billed as the first transaction in which U.S. shares are used to acquire a company listed in Hong Kong, TTM Technologies Inc. of Santa Ana, Calif., will buy the printed circuit board business of Meadville Holdings Ltd.
Circuit board maker TTM said it would pay $936 million in cash, shares and debt to acquire the Meadville activities including $114 million in cash and about $407.3 million in new TTM shares, giving Meadville shareholders 45.7% of the combined company.
TTM became North America's biggest printed circuit board maker two years ago with the $226 million acquisition of Tyco International Inc.'s circuit board activities. It said the Meadville agreement will create a unit with $1.35 billion in annual sales and give it access to the Chinese market, where Meadville counts such companies as Apple Inc., Nokia Oyj and Ericsson AB among its customers.
In the six months ended June 30, the Meadville circuit board business had sales of about $641 million and Ebitda of $119 million, the buyer said. TTM expects to complete the sale in the first quarter of 2010 and said the deal would add to earnings in its first full year.
In addition to selling the printed circuit board activities, Meadville will also unload its laminate business to founder Tang Hsiang Chien for $359 million and then dissolve and delist.
TTM shares were up 73 cents, or 6.5%, to $11.94.
UBS Investment Bank's David Hedley and Evan Winkler provided financial advice to Meadville, which received legal counsel from Skadden, Arps, Slate, Meagher & Flom LLP's Jonathan Stone, Nicholas Norris and Ivan Schlager. TTM received financial advice from Bank of America Merrill Lynch and legal counsel from Greenberg Traurig LLP's Michael Kaplan.
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