DSBJ Acquires soft board business of MultekFPC

DSBJ Acquires soft board business of Multek FPC

DSBJ is a giant listed company that spans multiple fields such as printed circuit boards, electronic devices and communication equipment. Recently, after the acquisition of Multek,  DSBJ has successfully taken a big step in the circuit board business, adding strength to the FPC soft board business.

After the successful listing of DSBJ in 2010, it began a strategic expansion of the industrial structure, adding new electronic device businesses represented by LED packaging and printed circuit boards. Now using the opportunity of listing, DSBJ has invested in new establishments and mergers and acquisitions. Realized the strategic layout of electronic devices and printed circuit board business. After the acquisition of Multek, DSBJ has become the world's top five manufacturers of flexible circuit boards.

In March 2018, DSBJ released the asset purchase plan again, planning to acquire the related body of FLEX's PCB manufacturing business (Multek) for US$292.5 million. It is reported that Multek's main products are rigid circuit boards (HDI) and rigid-flex boards, which are mainly used in telecommunications, consumer electronics, automotive and medical fields. There are high-end customers such as Ericsson, Cisco, Google, and Ford.

DSBJ's FPC flexible board is mainly used in the field of consumer electronics. There are high-end customers such as Apple. After the acquisition, DSBJ will realize the diversified coverage of circuit board products. The two businesses can complement each other's advantages and penetrate customers. .

It is worth noting that although Multek has good technical capabilities and customer resources, its profitability is still low. According to the data, Multek's gross margins were only 14.4%, 11.8% and 11.9% in 2015, 2016 and January-September 2017, which is still far behind the similar domestic enterprises. At the same time, the capacity utilization rate of some Multek factories is still relatively low.

However, some industry insiders believe that after the acquisition of DSBJ, Multek is expected to achieve a significant increase in profitability through management integration, internal cost reduction and efficiency enhancement, capacity expansion and customer relationship enhancement measures, just like the previous acquisition of MFLX.

DSBJ said that in the second half of the year, major customers' new machines are expected to achieve hot sales, which will significantly benefit and achieve rapid growth. In addition, the comprehensive strength of DSBJ's FPC flexible board business continues to increase, and it has received key support from major customers. In 2019, the value of individual machines on major machines of major customers is expected to continue to increase and develop towards the most expensive flexible board module.

Acquired Multek, industry integration is the next step, DSBJ soft boardFPC  business will be even more powerful.