Park Electrochemical Corp. Announces The Signing Of A Letter Of Intent For The Sale Of Its Arizona-Based Mass Lamination Business
Lake Success, New York, November 1, 2000 – Park Electrochemical Corp. (NYSE-PKE) announced that it had signed a letter of intent with Multilayer Technology, Inc. (“Multek”) relating to the purchase by Multek, a wholly owned subsidiary of Flextronics International Ltd. (NASDAQ:FLEX), of the assets and business of Nelco Technology, Inc. (“NTI”), a wholly owned subsidiary of Park. The letter of intent also contemplates that the parties will enter into a long-term supply agreement pursuant to which Park, through its subsidiaries, will supply electronic materials to NTI after it is acquired by Multek.
NTI is a manufacturer of semi-finished printed wiring boards, commonly known as mass lamination. NTI is located in Tempe, Arizona and has approximately 68,000 square feet of manufacturing space. For the six-month period ended August 27, 2000 (the first six months of Park’s current fiscal year), NTI had net sales of approximately $21 million of mass lamination product. Terms of the transaction are not being disclosed at this time. However, Park does not expect to record a material gain or loss with respect to the sale of the assets and business of NTI. The transaction is subject to the execution of a definitive agreement containing customary terms and conditions, and is expected to close before the end of the calendar year. Park Electrochemical Corp. will retain all rights to the Nelco name.
Brian Shore, Park’s President and CEO, commented, “We are very pleased that Multek will be acquiring our NTI mass lamination business in Tempe, Arizona. I have the highest regard for Steve Schlepp, Multek’s President, and the Multek organization, and I am pleased that Multek will continue to operate the NTI business. Multek is one of our key strategic global customers, and it has been a pleasure serving Multek around the world in recent years. Our relationship with Multek is particularly strategic because of Multek’s very strong technology orientation. We look forward to supplying Multek at Multek’s newest location in Tempe, Arizona.”
Certain portions of this press release may be deemed to constitute forward looking statements that are subject to various factors which could cause actual results to differ materially from Park’s expectations. Such factors include, but are not limited to, general conditions in the electronics industry, Park’s competitive position, the status of Park’s relationships with its customers, economic conditions in international markets, and the various factors set forth under the caption “Factors That May Affect Future Results” after Item 7 of Park’s Annual Report on Form 10-K for the fiscal year ended February 27, 2000.
Park Electrochemical Corp. is a leading designer and producer of advanced electronic materials used to fabricate complex multilayer printed circuit boards and interconnection systems. Park’s electronic materials business operates under the “Nelco” name. Park also manufactures specialty adhesive tapes and advanced composite materials for the electronics, aerospace and industrial markets.
Additional information about Park Electrochemical Corp. is available on the World Wide Web at www.parkelectro.com.