One of China’s largest sheet metal suppliers is set to acquire Irvine-based printed circuit board maker Multi-Fineline Electronix Inc. for $610 million.
The purchase by Suzhou Dongshan Precision Manufacturing Co. Ltd., which is expected to close in the third quarter, represents a nearly 41% premium of M-Flex shares at the close of trading Wednesday.
The transaction was unanimously approved by the boards of both companies.
M-Flex, which employed about 40 local workers through August, will maintain its Irvine headquarters and operate as an independent business unit of Suzhou Dongshan.
Chief Executive Reza Meshgin and senior management are expected to retain their positions after the deal closes, according to the company.
The company’s largest customer—Cupertino-based Apple Inc.—typically accounts for more than 50% of its annual revenue. It posted sales of $636.6 million last year, up less than 1% from 2014, according to its quarterly report released today.
M-Flex in the last few years has undergone a restructuring, closed factories in China and initiated other cost cutting measures in a bid to return to profitability. For the year it reported an adjusted profit of $47.6 million, compared to a net loss of $21.8 million in 2014.
The company’s shares are up 40% in after-hours trading to a market value of $405 million.
The M-Flex deal is the third significant sale in less than two days in Orange County’s hot technology sector. Yesterday Irvine-based Kurion Inc. was sold for $350 million to Paris-based nuclear cleanup specialist Veolia, and Tustin-based smartphone battery case maker Mophie Inc. was acquired for at least $100 million by rival Zagg Inc. in Utah.
