VTech Holdings Limited (HKSE: 303) has announced that it has signed an agreement with Pioneer Corporation under which VTech will acquire a manufacturing facility in Malaysia owned by Pioneer Technology (Malaysia) Sdn. Bhd., a subsidiary of Pioneer Corporation, the company said.
The acquisition of the manufacturing facility includes its fixed assets and business in manufacturing high performance audio equipment tailored for DJs, producers and artists to inspire their work and performance. This will strengthen VTech Contract Manufacturing Services´ (CMS) position as a manufacturer of professional audio equipment. It also adds 25% to its manufacturing capacity, with further potential for expansion.
VTech will fund the transaction through internal resources. The acquisition is expected to close in the third quarter of 2018 and is subject to certain closing conditions in the agreement.
VTech is the global provider of electronic learning products from infancy through toddler and preschool and the world´s largest manufacturer of cordless phones. It also provides highly sought-after contract manufacturing services. Since its establishment in 1976, VTech has been a pioneer in the electronic learning toy category. With advanced educational expertise and cutting-edge innovation, VTech products provide fun and learning to children around the world. For more information, visit www.vtech.com.