Allegro MicroSystems in Manchester has finalized the sale of its manufacturing facility in Thailand to Innolight Technology (Thailand) Co., Ltd. The AMTC purchase price was about $27 million USD before fees and expenses. This sale is an important milestone in the execution of Allegro’s manufacturing transformation to streamline back-end operations and enhance gross margin.
Allegro previously announced its facility consolidation plans as part of a multi-year strategic transformation to optimize the company’s manufacturing footprint and reduce fixed costs. In 2020, the company shared that it had successfully transferred production from AMTC into its Manila, Philippines facility, one quarter earlier than initially planned.
“This transaction takes us one step further toward our long-term goal of a fabless, asset-light operating model,” said Thomas Teebagy, senior VP of operations and quality. “By consolidating integrated circuit assembly and testing into a single site, we’re streamlining manufacturing flows and lowering our back-end costs, while simultaneously reducing our energy consumption and minimizing waste—important steps toward our vision of moving the world toward a safer, more sustainable future.”
Global advisory firm ATREG, Inc., based in Seattle, Washington, advised Allegro MicroSystems on this transaction.
Allegro MicroSystems is a global designer, developer, fabless manufacturer and marketer of sensor integrated circuits and application-specific analog power ICs enabling emerging technologies in the automotive and industrial markets.
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