Transformational Acquisition Will increase Sanmina’s Scale and Finish-Market Publicity to Cloud and AI Infrastructure
Deliberate Divestiture by AMD Creates Most popular NPI Manufacturing Partnership with Sanmina, a Main IMS Firm
Buy Value of $2.55 Billion Money and Fairness, Plus $450 Million in Contingent Consideration, Totaling As much as $3 Billion
Transaction Anticipated to be Accretive to Non-GAAP EPS in First 12 months Publish-Shut
Sanmina to Host Convention Name In the present day at 8:30 a.m. ET (5:30 a.m. PT)
SAN JOSE, Calif., Could 19, 2025 /PRNewswire/ — Sanmina Company (“Sanmina”) (NASDAQ: SANM), a number one built-in manufacturing options firm, at the moment introduced that it has entered right into a definitive settlement to accumulate the info heart infrastructure manufacturing enterprise of ZT Methods, a number one supplier of Cloud and AI infrastructure to the world’s largest hyperscalers, from AMD (NASDAQ: AMD). The strategic acquisition additional establishes Sanmina’s place as an industry-leading, vertically built-in world manufacturing options supplier that may now additionally speed up its prospects’ at scale deployments of cutting-edge AI programs for the info heart.
As a mixed firm, Sanmina expects to strengthen its main end-to-end part know-how, programs integration and provide chain options to ship even larger worth for its prospects. ZT Methods’ present annual web income run-rate is roughly $5 – $6 billion and the outlook forward is promising as new accelerated compute platforms are launched. As well as, ZT Methods’ manufacturing crew brings over 30 years of programs integration expertise and has advanced into a number one supplier of high-performance Cloud and AI infrastructure for hyperscalers. The corporate’s superior liquid cooling capabilities and manufacturing amenities in New Jersey, Texas and the Netherlands, along with its world provide chain, place it to supply end-to-end programs integration, from parts to finish racks, for the Cloud and AI infrastructure ecosystem.
“The acquisition of ZT Methods’ manufacturing operations positions Sanmina as an {industry} chief within the Cloud and AI ecosystem and permits us to additional capitalize on the numerous development alternative of this market,” said Jure Sola, Chairman and CEO of Sanmina Company. “Combining Sanmina’s world experience and vertical integration capabilities with ZT Methods’ high-quality manufacturing capability within the U.S. and Europe and in depth expertise with essential Cloud and AI infrastructure for hyperscalers will give us enhanced scale and deepen our buyer relationships. Sanmina can be higher capable of ship a aggressive benefit to its prospects, accelerating our development initiatives and enabling us to ship long-term sustainable worth for shareholders.”
Mr. Sola continued, “We sit up for welcoming the ZT Methods crew to Sanmina and realizing the advantages of this extremely strategic and accretive transaction.”
Strategic Partnership with AMD
AMD will retain ZT Methods’ AI programs design companies and can work with Sanmina as a U.S.-based new product introduction (NPI) manufacturing accomplice of option to speed up high quality and time-to-deployment of AMD AI rack and cluster-scale programs for cloud prospects. As ZT Methods’ manufacturing enterprise continues its platform transition in 2025, Sanmina and AMD stay dedicated to making sure the long run success of the enterprise’ robust income.
Forrest Norrod, Government Vice President and Normal Supervisor, Knowledge Middle Options enterprise unit at AMD stated, “We sit up for working with Sanmina as our most popular NPI manufacturing accomplice. This settlement will assist speed up the U.S.-based manufacturing of AMD AI end-to-end coaching and inference options – that are optimized for our buyer’s distinctive environments, ready-to-deploy at scale and primarily based on our open method. Collectively, we are going to speed up time-to-market and set the usual for high quality and adaptability to learn your complete AI ecosystem.”
Compelling Strategic and Monetary Rationale
- Elevated Scale and Excessive-Worth Finish-Market Publicity: The addition of ZT Methods’ manufacturing enterprise considerably enhances Sanmina’s place within the fast-growing Cloud and AI end-market. It’s anticipated to double Sanmina’s income scale in three years.
- Broadens and Deepens Cloud and AI Hyperscaler Buyer Relationships: By this transaction, Sanmina is well-positioned to each broaden and deepen relationships with current prospects by providing a extra complete, built-in answer from a trusted accomplice, whereas additionally including new prospects via ZT Methods’ relationships with hyperscalers.
- Brings Business-Main Manufacturing Capability and Know-Tips on how to Sanmina’s Current Footprint: ZT Methods brings massive state-of-the-art manufacturing amenities situated in New Jersey and Texas, with superior liquid cooling capabilities, which might be complementary to Sanmina’s current home manufacturing footprint. ZT Methods additionally operates a facility within the Netherlands, providing the chance to broaden Sanmina’s presence in Europe.
- Reinforces Sanmina’s Capabilities as a Main Finish-To-Finish Manufacturing Companion for Mission-Vital Applied sciences: The mixture enhances Sanmina’s place as an {industry} chief and bolsters the Firm’s alternatives to capitalize on the elevated demand for digital infrastructure. The addition of ZT Methods’ manufacturing capabilities to Sanmina’s world portfolio, mission-critical applied sciences and vertical integration permits options for your complete product lifecycle: design, engineering, manufacturing and achievement.
- Enhances Sanmina’s Means to Assist a Broad Buyer Base within the Cloud and AI Finish-Market: The addition of ZT Methods’ manufacturing enterprise establishes Sanmina’s place within the {industry}, creating an all-encompassing providing with the addition of full programs integration at scale. Sanmina will now have the capabilities wanted to accomplice carefully with each hyperscaler and OEM prospects throughout all platforms and applied sciences within the {industry}.
- Anticipated to Be Accretive to Earnings: The acquisition of ZT Methods’ manufacturing enterprise is predicted to be accretive to Sanmina’s non-GAAP EPS within the first 12 months after closing, with additional EPS accretion anticipated as synergies are absolutely realized over time.
- Compelling Synergy Alternatives: The mixture is predicted to generate synergies, pushed primarily by operational efficiencies as a consequence of scale and vertical integration.
Transaction Particulars
Beneath the phrases of the settlement, Sanmina has agreed to accumulate ZT Methods’ manufacturing operations for $2.25 billion of money to pay for property at goal web asset worth (with adjustment mechanism), $300 million premium consisting of fifty% money / 50% fairness and a $450 million contingent consideration primarily based on monetary efficiency of the enterprise over the subsequent three years, for as much as $3 billion complete.
The inclusion of fairness and a long-term contingency within the consideration additional align Sanmina and AMD’s pursuits in reference to the entry into the brand new strategic partnership.
The Sanmina fairness issued to AMD can be topic to a lock-up interval of three years, which begins on the time of closing, throughout which fairness gross sales are restricted to 33% within the first 12 months, 33% within the second 12 months, and the remaining fairness within the third 12 months.
In reference to the transaction, Sanmina has obtained dedicated financing from Financial institution of America for $2.5 billion.
This transaction has been unanimously permitted by the Sanmina Board of Administrators. It’s anticipated to shut close to the tip of the 2025 calendar 12 months, topic to regulatory approvals and customary closing situations.
Advisors
Foros served as Sanmina’s monetary advisor. BofA Securities served as Sanmina’s financing accomplice. A&O Shearman served as Sanmina’s authorized counsel. Joele Frank served as Sanmina’s strategic communications advisor.
Convention Name Info
Sanmina will maintain a convention name to evaluate at the moment’s announcement on Monday, Could 19, 2025, at 8:30 a.m. ET (5:30 a.m. PT). The entry numbers are: home 800-836-8184 and worldwide 646-357-8785. The convention can even be webcast stay over the Web. You’ll be able to go browsing to the stay webcast at Sanmina IR Occasions. Further data within the type of a slide presentation is accessible on Sanmina’s web site at www.sanmina.com. A replay of the convention name can be out there for 48-hours. The entry numbers are: home 888-660-6345 and worldwide 646-517-4150, entry code is 37338#.
About Sanmina
Sanmina Company, a Fortune 500 firm, is a number one built-in manufacturing options supplier serving the quickest rising segments of the worldwide Electronics Manufacturing Providers (EMS) market. Acknowledged as a know-how chief, Sanmina supplies end-to-end manufacturing options, delivering superior high quality and help to Unique Tools Producers (OEMs) primarily within the industrial, medical, protection and aerospace, automotive, communications networks and cloud infrastructure markets. Sanmina has amenities strategically situated in key areas all through the world. Extra details about the Firm is accessible at www.sanmina.com.
Sanmina’s Secure Harbor Assertion
The statements contained herein, together with these concerning the anticipated advantages of the acquisition of ZT Methods’ manufacturing operations, the anticipated timing and probability of closing the transaction, the projected accretion to earnings, operational synergies, future monetary efficiency, and the Firm’s outlook for development in fiscal 2025 and past, represent forward-looking statements throughout the which means of the secure harbor provisions of Part 21E of the Securities Alternate Act of 1934. These forward-looking statements are primarily based on present expectations, estimates, and projections about our {industry}, administration’s beliefs, and sure assumptions made by the Firm, all of that are topic to alter.
Precise outcomes might differ materially from these expressed or implied in these forward-looking statements as a consequence of quite a lot of elements, together with however not restricted to: the danger that the proposed acquisition is probably not accomplished in a well timed method or in any respect; the chance that regulatory approvals required for the transaction is probably not obtained or could also be obtained topic to situations that aren’t anticipated; the danger that the anticipated advantages, synergies, and accretion from the transaction is probably not realized or might take longer to understand than anticipated; adversarial modifications in the important thing markets we goal, together with the cloud and AI infrastructure sectors; the influence of current or future modifications in tariffs and commerce coverage, which can adversely have an effect on our prices, provide chain, and buyer demand; important uncertainties that may trigger our future gross sales, earnings, and money flows to be variable; our reliance on a restricted variety of prospects for a considerable portion of our gross sales; dangers arising from our worldwide operations and growth into new geographic markets; integration dangers associated to combining ZT Methods’ manufacturing operations with our personal; geopolitical uncertainty; and different threat elements set forth within the Firm’s most up-to-date annual and quarterly studies filed with the Securities and Alternate Fee.
The Firm undertakes no obligation to (and expressly disclaims any such obligation to) replace or alter any forward-looking statements, whether or not on account of new data, future occasions, or in any other case, besides as required by regulation.
Sanmina Contacts
Buyers
Paige Melching
SVP, Investor Communications
408-964-3610
Media
Eric Brielmann / Jed Repko / Lyle Weston
Joele Frank, Wilkinson Brimmer Katcher
Sanmina-JF@joelefrank.com
(212) 355-4449
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SOURCE Sanmina Company
