UEI’s sale of Guangdong Province facility signals shift in
manufacturing operations to Yangzhou and Qinzhou Regions
SANTA ANA, Calif.--(BUSINESS WIRE)--Sep. 30, 2016--
Electronics Inc. (UEI), (NASDAQ:UEIC), the worldwide leader in
sensing and control technologies for the smart home, today announced
that its wholly-owned subsidiary, C.G. Development Limited (“C.G.
Development”), has entered into an agreement to sell its entire
ownership interest in Gemstar Technology (China) Co. Ltd. (“Gemstar
China”) to Guangzhou Junhao Investment Co., Ltd. (“GJI”).
Gemstar China, located in Panyu (Guangdong Province), owns and operates
one of the four UEI manufacturing facilities located in China. UEI made
the decision to transfer manufacturing operations from its main
Guangdong Province location into its newer facilities located in the
Yangzhou and Qinzhou regions to take advantage of the available labor
pool and more stable labor costs.
“This transaction is part of a worldwide manufacturing strategy that
includes investing in new facilities and equipment to grow our market
leadership position in advanced remote control and sensor technologies,”
said Paul Arling, Chairman and Chief Executive Officer of Universal
Electronics. “Our China operations, in Yangzhou and Qinzhou, represent
an important manufacturing and operations hub and form the foundation
for our globally diverse manufacturing operations that include
Monterrey, Mexico and Manaus, Brazil.”
Securing a buyer for Gemstar China represents an important milestone in
the overall strategy, as UEI continues to scale and invest in its global
operations to ensure reliable and high quality development and
manufacture of customer products throughout the world.
In exchange for the sale of 100% of the capital of stock of Gemstar
China, GJI will pay C.G. Development RMB 320 Million (approximately USD
48 Million) in cash at closing. The purchase price will be paid into an
escrow account, as specified in the agreement. The closing of the sale
will be subject to customary due diligence and regulatory approval by
the local commerce authority.
The transaction is expected to be completed within approximately 28
months from the execution of the agreement. During this period, UEI will
transfer its remaining Gemstar China production at Panyu to other
UEI-owned manufacturing facilities in China. UEI’s China-based
engineering development and centralized support organizations, presently
located at Gemstar China in Panyu, will transfer to two new technology
centers located in Suzhou and Guangzhou.
About Universal Electronics
Electronics Inc. (NASDAQ:UEIC) is the worldwide leader in universal
control and sensing technologies for the smart home. For more
information, please visit www.uei.com/about.
About Guangzhou Junhao Investment
Guangzhou Junhao Investment is a wholly-owned subsidiary of Times
Property Holdings Limited, which is listed among China’s top 50 real
estate developers and is publicly traded on the Hong Kong Stock Exchange.
All trademarks appearing herein are the property of their respective
Safe Harbor Statement
This press release contains forward-looking statements that are made
pursuant to the Safe-Harbor provisions of the Private Securities
Litigation Reform Act of 1995. Words and expressions reflecting
something other than historical fact are intended to identify
forward-looking statements. These forward-looking statements involve a
number of risks and uncertainties, including completing the diligence
review to buyer’s satisfaction and obtaining the necessary regulatory
approvals; the timely and efficient transfer of operations, equipment
and personnel as contemplated by management; the retention of
engineering and factory personnel as expected by management; achieving
the labor cost savings, operational scale and other synergies as
expected by management; and the ability of the company to attract
quality labor in the remaining locations as anticipated by management;
and other factors described in the Company’s filings with the Securities
and Exchange Commission. The actual results that the Company achieves
may differ materially from any forward looking statement due to such
risks and uncertainties. The Company undertakes no obligations to revise
or update any forward-looking statements in order to reflect events or
circumstances that may arise after the date of this release.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160930005133/en/
Source: Universal Electronics Inc.
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