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Comtel acquires three plants from struggling National Manufacturing Technologies

Tustin-based contract electronics maker Comtel Holdings Inc. has acquired three plants from struggling National Manufacturing Technologies Inc. of Carlsbad.

Comtel, a maker of circuit boards, modems and other electronics, has taken over assembly plants in Carlsbad and Tijuana and a sheet metal facility in Vista as part of the deal. The plants count about 135 people now working for Comtel, which employed 500 before the sale.

“This completes the goal of having capabilities in all three geographical areas of Southern California,” said Lyle Jensen, Comtel’s chief executive.

The price of deal wasn’t disclosed and is set to be paid in a series of notes payable to National Manufacturing over time based on how the plants perform, Jensen said. The facilities were bought by Comtel unit Alton Diversified Technologies Inc.

The new plants stand to boost Comtel’s annual sales from $75 million to $100 million, according to Jensen. The company’s manufacturing space is nearly doubled by the new sites, going from 125,000 square feet to 243,000 square feet, he said.

The deal is part of Comtel’s bid to build a regional contract electronics business through acquisitions. It is pursuing a roll-up strategy and is funded by Miami-based Maplewood Partners LP.

The company’s management got started by acquiring Tustin’s Comtel Electronics Inc. in 1999. Later that year, the company bought Camarillo-based Corlund Electronics. A year ago, Comtel acquired the manufacturing operations of Irvine-based Pen Interconnect Inc.

Comtel makes electronics for medical companies including Eastman Kodak Co.’s Kodak Medical Imaging Systems unit. The company also counts industrial businesses and wireless device makers as customers.

In January, Lake Forest-based Telenetics Corp. tapped Comtel to produce modems licensed from Motorola Inc.

Comtel sees St. Louis-based Viasystems Group Inc., which has a Lake Forest facility, among its competitors, Jensen said.

The company’s customer base has provided insulation from the technology slump, Jensen said. Though Comtel missed out on the heady growth in computers, data storage and wireless phones in the past few years, Comtel’s conservative tack is bearing fruit now, according to Jensen.

“We’ve had the best five months of our company’s history from January to May when everybody else is slowing down,” he said.

National Manufacturing said the sale of the plants was forced after two large customers failed to pay their bills. For the quarter ended Dec. 31, the latest available from the company, National reported a doubling in sales to $4.7 million but lost $382,000 during the period.

The customer defaults have caused National “to experience severe financial pressures,” according to a company statement. National said it plans to offer more details on its situation in an upcoming Securities and Exchange Commission filing. n

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