Circuit board manufacturer Jabil Circuit Inc said Thursday that it has signed a letter of intent to acquire Chinese firm GET Manufacturing Inc for $250m. Privately-held GET provides electronics manufacturing services. It is headquartered in Hong Kong and maintains operations in China, Mexico and the US. The total purchase price will be paid in Jabil common stock and the deal will be accounted for as a pooling-of-interests.
The transaction is expected to close by August 31 and Jabil reckons it doesn’t see the acquisition as materially accretive to earnings in the first year. Jabil says the move, which comes as part of its overall business plan, gives it a strong foundation in China with 5,000 employees. It adds that GET has 30 years of profitable operations and a solid customer base that doesn’t overlap its own.
