Amptech Corp., a Canadian injection molder of electronic and telecommunications parts, is finalizing a deal to take over Phoenix International SA de CV, a fast-expanding Mexican molder of electronic parts. The deal is due to close by early May. Amptech of Calgary, Alberta, and Phoenix's majority shareholder, General Electric Co., agreed on an undisclosed purchase price in January, said Ehor Babij, the Canadian firm's president and chief executive officer.
Amptech operates 45 injection presses in Calgary where it produces 1.5 million telephone housings a year for its top customer, Northern Telecom.
The Calgary molder is integrated, operating a busy mold shop and telephone housing assembly lines to supply customers on a just-in-time basis.
Amptech decided to look outside the United States and Canada about three years ago because U.S. sites with a relevant customer base already have well-developed molder infrastructures, the firm's president said in a recent telephone interview.
His firm, which considered several locations in Mexico, chose Guadalajara because of its heavy concentration of potential clients in markets Amptech serves. Companies there include AT&T, Hewlett Packard, IBM, Kodak and Texas Instruments.
Three-year-old Phoenix, which began life in the old Guadalajara Wang Computer plant as a U.S.-Mexican joint venture, injection molds electronic parts and makes electromechanical assemblies.
It was bought in 1993 by injection molder Component Techno-logy Corp. of Erie, Pa. GE Capital Corp. took control of CompTech in 1991 after the Erie molder's owners defaulted on GE loans.
In contrast, Phoenix consistently has reported profitable results and has seen its sales soar sevenfold in three years, said its president, Omar Osorio. Its 1995 sales hit US$7.7 million, and 98 percent of its production goes for export.
Babij, who would not reveal the purchase price until the deal is concluded, said his firm has "extensive'' plans for Phoenix.
The plans include purchasing more injection presses and a major molding expansion to capture a large share of the big local component business, Babij said.
This is the first foreign acquisition by 28-year-old Amptech, which expects to report sales of about US$25 million for fiscal 1995-96, Babij said. But his firm already has entered into two joint ventures with Japanese and European partners.