MCMS Sold to Plexus
Nov. 30, 2001
NAMPA, Idaho (AP) _ Electronics manufacturing company MCMS Inc. will carry on as part of Plexus Corp., a Neenah, Wis.-based company that purchased it at a bankruptcy auction.
MCMS, which had about 590 workers in Nampa and another 1,000 worldwide, filed in September for protection from creditors in federal bankruptcy court.
Executives signed an agreement this week to sell most of its assets to Plexus at a top bid of $45 million. The transaction is expected to close by Jan. 8.
The purchase includes the Nampa facility, which will change its name to Plexus after the sale.
``We think it's the most successful solution,'' MCMS chief financial officer Chris Anton said. ``Undoubtedly there will be certain corporate functions that over time will not be necessary, but we think the majority of employees will have jobs.''
Problems began for MCMS last spring when when it lost its biggest customer, networking giant Cisco Systems Inc. Compounded by the economic slowdown and $250 million in debt, the company has reduce its Idaho work force by nearly 850 since January.
In September, it announced an offer of $43.5 million for most of its assets from Concord, Mass.-based Manufacturers' Services Limited. That was contingent on completion of a bankruptcy auction, where the Massachusetts company's bid was surpassed by Plexus.
Anton said the two companies were the only bidders.
MCMS' operations in Mexico and Belgium are not part of the sale and will be sold separately to pay creditors in bankruptcy proceedings, he said. Only the senior lenders are expected to be fully compensated after the asset sale.
Shares of Plexus fell $1.05 to $30.15 in trading Friday on the Nasdaq Stock Market.
On the Net: http://www.mcms.com