Continuing its acquisition spree, Singapore-based electronics contract manufacturing giant Flextronics International Ltd. has bought privately owned Avail Medical Products Inc. of Fort Worth, Texas.
The deal adds to Flextronics' portfolio as a leading contract manufacturer of disposal, single-use medical devices, and comes less than three months after the firm announced it would buy Solectron Corp.
The Solectron deal is expected to close Oct. 1, assuming shareholders approve it Sept. 27. That $3.6 billion agreement cleared its last regulatory hurdle Aug. 29 when it was approved by the European Union. The combination of Flextronics and Solectron will create a company with more than $30 billion in annual sales and a workforce of 200,000 in 35 countries across four continents.
``When our core medical business is combined with the capabilities of Avail and the services that we will add from the pending Solectron acquisition, Flextronics Medical will increase the range of services it offers customers,'' said Dan Croteau, president of Flextronics Medical, in a news release.
Croteau added that his company will have one of the broadest capability ranges in the medical industry.
Flextronics does not break out financial results for its medical business. However, medical is part of the firm's industrial, automotive and medical segment, which represents $3.6 billion in business for Flextronics and Solectron combined.
Avail, with 3,500 employees, expects to generate sales of about $250 million in 2007 from a product portfolio that includes catheters, wound management and drug delivery devices, acording to Flextronics. In addition to U.S. manufacturing operations, Avail has plants in Mexico and China.
Flextronics did not disclose terms of the deal, but noted that the purchase would not affect 2007 earnings.
Croteau said the Avail acquisition will allow Flextronics to provide more services to its medical customers, including ``design, manufacturing and logistics of disposal medical devices, hand-held diagnostics and drug delivery devices and imaging [and] lab sciences equipment.''
Avail makes such products as coronary catheters and dispenser coils, prep sponges, respiratory valves, infusion catheters and injector assemblies.
J. Randall Keene, Avail president and chief executive officer, said in a news release that together the companies will have the capabilities to expedite product development and simplify customer supply chains.