SANTA ANA, CA -- TTM Technologies has signed a definitive agreement to sell its Shanghai backplane assembly plant for approximately $11.8 million, subject to customary post-closing adjustments, to DBG Holdings.

TTM expects the transaction to close near the end of the first quarter.

BPA is a small assembly facility that generated $44.7 million in revenues and an immaterial amount of operating income in 2022, TTM said in announcing the sale.

TTM said the transaction is consistent with the printed circuit board fabricator's strategy to continue developing TTM as a diversified technology solutions leader and to reshape its core business portfolio for improved differentiation, financial stability and long-term profitability. This strategy entails investing in differentiated commercial and aerospace & defense (“A&D”) capabilities.

Following the divestiture, TTM will exit the commercial backplane assembly business.

TTM called DBG a "particularly attractive buyer" due to its strategic commitment and understanding of the assembly business. It has existing customer relationships with Shanghai BPA customers, and also offers related products, services and expertise. The firm reported net profits of 76.1 million yuan ($D10.9 million) on revenue of 301 million yuan in 2022.

“Shanghai BPA has been a longtime member of the TTM family, but we firmly believe this divestiture is in the best interests of our employees and customers," said Tom Edman, president and CEO, TTM Technologies. “TTM is selling Shanghai BPA to a buyer that is fully qualified and committed to achieve continued success for this business. In turn, this divestiture positions TTM to focus our full energy and resources on other lines of business where we are very well positioned to service our customers with differentiated product solutions to address the challenges and growth opportunities that exist across the aerospace & defense, automotive, medical, industrial & instrumentation, networking and data center computing end markets.

"While we are announcing the divesture of the Shanghai BPA business today, we will continue to operate the business in the same manner as we do now through the date of close, which we anticipate to occur near the end of the first quarter. This includes fully supporting our Shanghai BPA employees and customers."

• Prev
• Next