PHOENIX, Oct. 3, 2007 (PRIME NEWSWIRE) -- Suntron Corporation ("Suntron" or the "Company") (Nasdaq:SUNN), a leading provider of integrated electronics manufacturing solutions, announced today that its current 90% stockholder, Thayer-Blum Funding, L.L.C. ("Thayer-Blum"), intends to take the Company private subject to completion of financing. Thayer-Blum has formed a new subsidiary to merge with and into Suntron to increase its ownership to 100%. Suntron will be the surviving entity of the merger and its shares will no longer be publicly traded upon the effective date of the merger, which is expected to occur in December 2007.
As set forth in Schedule 13E-3 filed today with the U.S. Securities and Exchange Commission, the terms of the proposed transaction provide that each share of Suntron common stock held by the public stockholders will automatically be converted into the right to receive a cash payment of $1.15 per share, without interest. Instructions for surrendering stock certificates will be set forth in a Notice of Merger and Appraisal Rights and Letter of Transmittal, which will be mailed to stockholders of record within 10 calendar days following the date the merger becomes effective.
"We are very pleased with Thayer-Blum's decision to increase its investment in Suntron, as it demonstrates continued confidence in our ability to achieve the Company's long-term strategic objectives," stated Paul Singh, Suntron's President and Chief Executive Officer. "We believe that the costs associated with being a public company in today's environment exceed the benefits for Suntron and we look forward to aligning our resources with the needs of our customers. The going private transaction, along with other actions we have recently taken to improve our operating efficiencies, should provide us the flexibility to deliver our customers the highest quality service and solutions," concluded Mr. Singh.
About Suntron Corporation
Suntron delivers complete manufacturing services and solutions to support the entire life cycle of products in the industrial, semiconductor capital equipment, aerospace and defense, networking and telecommunications, and medical markets. Headquartered in Phoenix, Arizona, Suntron operates five full-service manufacturing facilities and two quick-turn manufacturing facilities in North America. Suntron is involved in product design, engineering services, cable and harness production, printed circuit card assembly, box build, large scale and complex system integration, commercial off-the-shelf integration and test.
The Suntron Corporation logo is available at http://www.primezone.com/newsroom/prs/?pkgid=2268
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This release contains forward-looking statements regarding a "going private" transaction and certain related cost savings that relate to future events or performance. These statements reflect Suntron's current expectations, and Suntron does not undertake to update or revise these forward-looking statements, even if experience or future changes make it clear that any projected results expressed or implied in this or other Company statements will not be realized. Furthermore, readers are cautioned that these statements involve risks and uncertainties, many of which are beyond Suntron's control, which could cause actual results to differ materially from the forward-looking statements. Completion of the "going private" transaction remains subject to the ability of Thayer-Blum to obtain financing on acceptable terms and consent from Suntron's lenders.
Visit www.suntroncorp.com or call 888-520-3382 for more information.