SANTA ANA, CA – TTM Technologies completed the divestiture of its four China manufacturing plants comprising the assets of its Mobility business unit for $550 million in cash.

The buyer is AKMMeadville Electronics (Xiamen), a consortium consisting of Meizhi Investment (Xiamen), Xiamen Semiconductor Investment Group, AKM Electronics Industrial (Panyu), and Anmei Ventures (Xiamen) Equity Investment Partnership.

“I am very pleased to announce completion of this transaction, even as the health and economic risks for the global economy related to the coronavirus (Covid-19) have escalated over the past several months,” said Tom Edman, CEO of TTM. “We expect that the remaining TTM business will be less seasonal and will benefit as we serve longer cycle markets that better fit our strategic direction. We remain excited about the anticipated growth opportunities in 5G infrastructure, cloud data centers, aerospace and defense electronics, and increasing automotive electronic content.  Finally, the cash proceeds from this sale will further strengthen our balance sheet during a period of global economic uncertainty and provide capital capacity for future growth investments.”

Net proceeds are expected to be deployed to invest in the business or reduce debt. The sale does not include certain accounts receivable of the business unit as of the closing date, now estimated to be approximately $95 million, which the firm expects to collect during the next three to four months. The current estimated accounts receivable is less than previously disclosed due to an earlier than expected closing of the transaction.

In fiscal 2019, the Mobility business unit generated revenues of $556 million, operating income of $14.8 million and adjusted EBITDA of $90.5 million.