Flextronics To Further Expand Its Automotive Offering
Flextronics announced today that it has entered into a definitive agreement to acquire Mirror Controls International (MCi) from private equity firm Egeria in an all cash transaction valuing its share capital at €457 million ($494 million USD*).
Based in Woerden, the Netherlands, and with three highly automated manufacturing facilities in China, Mexico, and Ireland, MCi is a leading global manufacturer of glass and powerfold mirror actuators in the automotive market and generated approximately €200 million ($216 million USD*) in revenue over the past twelve months, historically growing over 20% year over year. The acquisition is expected to be accretive to Flextronics’ growth, margin, EPS and cash flow profile and is expected to close in the September quarter.
“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. “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. Additionally, our strong free cash flow generation enables margin accretive acquisitions like this to be completed while we remain committed to maximizing shareholder value and returning over 50% of free cash flow to shareholders,” he added.
“We are pleased to announce the acquisition of MCi, a global market leader in both glass and powerfold mirror actuators that is recognized for its best-in-class engineering capabilities and product portfolio,” said Chris Obey, president of Flextronics Automotive. “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.”