1.
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Q: | Who is Meadville? | ||
A: | Meadville is headquartered in Hong Kong and operates seven facilities in mainland China and one in Hong Kong. It is one of the leading PCB manufactures in China with 2008 revenue of US $669 million and over 12,000 employees. The company focuses on the production of higher technology commercial PCBs, flexible and rigid-flex circuits and chip carrier substrates. Major customers include well known global OEM and EMS customers from China, Japan, South Korea, North America and Europe. Leading end market applications include wireless and land line infrastructure, notebook and server computing products, cellular phones and other consumer hand held products. | |||
More information on Meadville can be found on their website: www.meadvillegroup.com. | ||||
2.
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Q: | Why is TTM doing this transaction? | ||
A: | The combination of TTM and Meadville will be a transformational event, creating one of the worlds leading PCB products and backplane assembly companies with state of the art production capabilities in both the North America and Asia/Pacific regions. In total, the combined scale, complementary product capabilities and market breadth of these two industry leaders will create significant competitive advantages for TTM which, in turn, will better position the company to support our customers evolving needs for cost effective printed circuit board and backplane assembly product solutions. |
3.
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Q: | What does this deal mean to me as a customer? | ||
A: | The resulting integrated sales force and manufacturing operations will provide our commercial customers with a legitimate one-stop global supply solution, capable of supporting a broad range of PCB and backplane product technologies throughout the entire product life cycle. Furthermore, by strengthening our ability to compete and grow in commercial markets, this transaction will reinforce TTMs ability to invest in its technology leadership positions and to continue to grow as the leading supplier of custom aerospace & defense PCB products in North America. | |||
4.
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Q: | When will the transaction take effect? | ||
A: | The transaction is subject to various regulatory and government approvals, and the approval of both companies shareholders. It is currently anticipated that the deal will close during the first quarter of 2010. | |||
5.
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Q: | What is the immediate effect on my day to day relationship with TTM? | ||
A: | Until the deal closes, both companies must continue to operate independently. TTM will continue to run business as usual. We will continue to conduct our existing relationships with customers and business partners as we do now. | |||
6.
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Q: | I am a military customer; how does this deal help me and why should I be comfortable with it? | ||
A: | This deal allows TTM business to grow as opposed to shrinking over time as a niche U.S. supplier. It is good for our military customers if TTM has a healthy and diversified base of commercial and military customers. The PCB business requires routine significant capital investment which is enabled by a growing top line of profitable business. | |||
We are working closely with the Department of Defense (DOD) and the Committee on Foreign Investment in the U.S. (CFIUS) to ensure the protection of national security. | ||||
7.
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Q: | Who will be my main point of contact with TTM going forward? | ||
A: | Until the deal closes, both companies must continue to operate independently. TTM will continue to run business as usual. We will continue to conduct our existing relationships with customers and business partners as we do now. | |||
8.
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Q: | What are the terms of the transaction? | ||
A: | As part of the transaction, TTM will acquire Meadvilles PCB business in exchange for an equity purchase price of approximately $521 million which will be payable in the form of cash and TTM common stock, plus the expected assumption of bank debt at closing. This implies a transaction enterprise value of approximately $936 million. The debt being assumed is in the form of a new fully committed bank facility with a syndicate of seven leading Asian banks. | |||
9.
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Q: | Will any of the TTM factories that supply my product be closed as a result of this combination? | ||
A: | The Meadville footprint expands and enhances TTMs facility specialization strategy. The combination of the two companies creates a global one-stop solution for customers that we expect will open new opportunities for additional business. There are no planned facility closures as part of this transaction. | |||
10.
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Q: | How will the company be managed after the transaction? | ||
A: | We believe that our global presence, local knowledge strategy will be key to future success. This transaction will strengthen the combined companies presence in both the US and Asia. TTM corporate headquarters will remain in Santa Ana, California and the Asian PCB operations will be headquartered in Hong Kong led by the existing Meadville management team. |