COSTA MESA, CA -- TTM Technologies has signed a letter of intent to split up its interest in a pair of PCB plants in Dongguan, China.

Under terms of the deal, TTM will sell its 70.2% equity interest in the Shengyi Electronics (SYE) plant to its minority partner, Shengyi Technology (Sytech). In return, TTM will acquire Sytech's 20% equity interest in the Dongguan Meadville Circuits (DMC) plant.

Both fab shops manufacture conventional PCBs and are located in Dongguan. The deal is subject to conclusion of a formal sale and purchase agreement between the parties, and is expected to close by the end of the second quarter. A condition for closing is that the parties value all of SYE at 1 billion RMB (about $161 million) and all of DMC at 900 million RMB (about $145 million).

The SYE plant dates to a joint venture between Meadville and Dongguan Shengyi Electronics launched in 1990. TTM inherited the JV when it acquired Meadville in 2010.

TTM is the world's seventh-largest printed circuit board manufacturer.

"In our Asia Pacific operating segment, we see the strongest growth prospects and customer demand for our advanced technology PCBs," said Kent Alder, CEO of TTM. "When completed, this transaction will reduce our footprint for conventional PCBs in Asia Pacific and should help improve our capacity utilization."