The sale price is approximately $30 million before fees and expenses.
The facility was constructed in 2015 and was originally used for the assembly and testing of power IC products for the automotive industry. It is a 34,115 square meter facility with clean room production areas, office space and unimproved shell space suitable for expansion. The site includes developable land that could be used to double the manufacturing capacity of the site.
Late in 2020 Allegro finished transferring production from AMTC in Thailand in to its Manila Philippines facility known as AMPI one quarter ahead of schedule. The sale of AMTC is in-line with previously announced plans for back-end facility consolidation by Allegro and the company said it completes a transition to a fabless asset-lite manufacturing model.
Ravi Vig, CEO of Allegro, said: "I would like to thank the employees for their contributions to transferring production to AMPI ahead of schedule and for their commitment to making this transition successful. The sale of the AMTC facility is an important step in optimizing our manufacturing footprint and will further improve our production flow, reduce our cycle times, and enhance our profitability."
Allegro expects to close the transaction within the calendar year, subject to governmental approvals in Thailand and customary closing conditions.
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