VTech Completes Acquisition of Mexican Manufacturing Facility from QSC, LLC

Rhea-AI Summary

VTech Holdings Limited has completed the acquisition of a production facility in Tecate, Mexico from QSC, LLC for manufacturing wood enclosure loudspeakers. This acquisition, finalized on April 1, 2021, enhances VTech Contract Manufacturing Services' position in professional audio equipment manufacturing and strategically expands its global footprint. The transaction, initially announced on January 20, 2021, was funded through internal resources, enabling VTech to better serve its customers.

Positive

• Acquisition strengthens VTech's position in professional audio equipment manufacturing.
• Expands VTech's global footprint by establishing a facility outside of Asia.

Negative

• None.

HONG KONG, April 8, 2021 /PRNewswire/ -- VTech Holdings Limited (HKSE: 303) announced today that it has completed the acquisition of a production facility in Tecate, Mexico from QSC, LLC for manufacturing wood enclosure loudspeakers.

The acquisition was announced on 20 January 2021. In addition to manufacturing wood enclosure loudspeakers, it strengthens VTech Contract Manufacturing Services' leading position as a manufacturer of professional audio equipment. Furthermore, the acquisition of a manufacturing site outside Asia expands VTech's global footprint strategically and better serves the needs of its customers.  

The transaction was completed on 1 April 2021 and was funded through internal resources.

About VTech

VTech is the global leader in electronic learning products from infancy through toddler and preschool and the largest manufacturer of residential phones in the US. 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. Leveraging decades of success in cordless telephony, VTech's diverse collection of telecommunication products elevates both home and business users' experience through the latest in technology and design. As one of the world's leading electronic manufacturing service providers, VTech offers world-class, full turnkey services to customers in a number of product categories. The Group's mission is to design, manufacture and supply innovative and high quality products in a manner that minimises any impact on the environment, while creating sustainable value for its stakeholders and the community. For more information, please visit www.vtech.com.

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SOURCE VTech

FAQ

What is the purpose of VTech's acquisition of the Tecate facility?

The acquisition aims to enhance VTech's manufacturing capabilities for wood enclosure loudspeakers and strengthen its position in the professional audio equipment market.

When was the acquisition of the Tecate manufacturing facility completed?

The acquisition was completed on April 1, 2021.

How was the acquisition of the Tecate facility funded?

The acquisition was funded through internal resources.

What strategic advantages does the Tecate facility provide to VTech?

The facility expands VTech's global footprint and allows the company to better serve its customers' needs.