Shenzhen Tatfook to Acquire Forem (Shenzhen) From CommScope; Companies also Agree to Long-Term
Manufacturing and Supply Agreement for Filter Products
SHENZHEN, China, April 17, 2012—CommScope, Inc., and Shenzhen Tatfook Technology Co., Ltd., have entered into definitive agreements under which Tatfook will acquire CommScope’s filter manufacturing subsidiary and serve as a long-term manufacturer of CommScope filter products used in wireless networks.
Tatfook will purchase Forem (Shenzhen) Co., Ltd., in a transaction that is expected to close by the end of the third quarter. The sale transaction includes the CommScope manufacturing facility in Shenzhen and certain equipment, inventory and employees.
CommScope will retain critical capabilities and competencies that are important to providing filtering solutions to the global wireless market, including customer relationships, a world-recognized brand, product innovation and R&D, global customer support and customer contracts. Meanwhile, upon closing, the approximately 490 employees at Forem (Shenzhen) will become employees of Tatfook, and Tatfook will manufacture CommScope’s filter products.
“The rapid evolution to new radio frequencies and technologies, such as LTE, along with trends such as site sharing and operator consolidation, has spurred greater demand for filtering solutions in wireless networks,” said Randy Crenshaw, chief operating officer, CommScope. “New network technologies and multiple radio frequency bands require additional filtering to eliminate unwanted signals and interference.
“We believe this transaction can help us increase the long-term strength of our Filter business and provide us with additional opportunities for success in serving customers. A strong manufacturing specialist such as Tatfook provides us with significantly larger manufacturing scale and local supply chain expertise, which helps CommScope improve flexibility, cycle times and cost structure.”
The transaction is subject to certain Chinese governmental and regulatory approvals, as well as other customary closing conditions. Detailed terms of the transaction are not being disclosed.
About Tatfook
Shenzhen Tatfook Technology Co., Ltd. (www.tatfook.com) is one of the global leading manufacturing service providers engaging both in radio frequency subsystem solutions and structural assembly in the application of mobile telecommunication base stations. Established in June 2001 and headquartered in Shenzhen, Tatfook has five R&D centers (in Beijing, Shanghai, Shenzhen, Chengdu and Italy) and two large manufacturing bases in Shenzhen and Anhui. Thanks to the efforts of more than 4000 employees, Tatfook is adept at satisfying customer’s expectations with its quick response, first-class service and low cost. Tatfook has been listed on China’s Stock Market since October 26th, 2010 with stock code 300134.
About CommScope
CommScope (www.commscope.com) has played a role in virtually all the world’s best communication networks. We create the infrastructure that connects people and technologies through every evolution. Our portfolio of end-to-end solutions includes critical infrastructure our customers need to build high-performing wired and wireless networks. As much as technology changes, our goal remains the same: to help our customers create, innovate, design, and build faster and better. We’ll never stop connecting and evolving networks for the business of life at home, at work, and on the go.
