Taiwan's Compal Electronics to acquire Toshiba's Mexican LCD TV facility
13 July 2011
Compal Electronics Inc, the world's second-largest contract PC notebook maker today said that it will buy Toshiba Corp's LCD television manufacturing facility in Mexico.
Taipei-based Compal is a original design manufacturer of notebook computers and monitors for a large number of clients around the world, including Acer Inc., Dell, Toshiba, Hewlett-Packard, and Fujitsu Siemens Computers.
It is the second-largest contract laptop manufacturer in the world behind Quanta. Computer and had shipped over 48 million notebooks last year.
"By acquiring TMX (Toshiba Electromex), Compal looks forward to expanding LCD TV manufacturing flexibility, a diversified sales mix, and revenue growth momentum in the future," the Taiwanese original design manufacturer said in a statement.
Compal said its decision to acquire Toshiba LCD TV assembly plant in Clarence City (Juarez), Mexico, was based on changes in global market competition and to adjust and deepen its global distribution patterns.
With this transaction, there will be closer cooperation between the two companies, said Compal. Toshiba LCD TV is currently one of Compal's major customers.
The company also believes that this transaction will significantly benefit its LCD TV business expansion and diversification of revenue sources
Compal, which did reveal the financial terms of the transaction, said that it expects to complete the deal by the end of the third quarter of 2011.