The computer manufacturing services company, Manufacturers' Services, founded by Irishman, Mr Kevin Melia, has agreed to acquire Philips Consumer Electronics' printed circuit board assembly operation in Poland.
The acquisition - for an undisclosed sum - gives Manufacturers' Services a substantial presence in Eastern Europe. All of Philips's 500 employees will join Manufacturers' Services, bringing its total workforce to 4,500 employees worldwide.
The company which manufactures computer hardware for customers like IBM, Hewlett Packard, Ericsson and Unisys, is expected to make an initial public offering on the US Nasdaq stock exchange.
Last year, the company recorded sales of $838 million (€783 million), and Mr Melia has publicly stated he wants to increase its value to $3 billion. The quickest way of achieving this goal is through a strategy of investment in international manufacturing facilities.
The Philips operation is Manufacturers' Services' third and largest acquisition this year. It is now likely to seek a stock exchange listing in order to raise cash for further global acquisitions.
The majority of the equity in Manufacturers' Services is held by the Wall Street merchant bank, Donaldson, Lufkin and Jenrette, but it is understood Mr Melia retains up to 20 per cent. Manufacturers' Services employs more than 300 people at its manufacturing facility in Athlone. The company was founded in 1994 by Mr Melia.
