Sanmina Agrees to Buy Hadco in Stock Deal

Sanmina Corp., a contract electronics maker, said it agreed to buy Hadco Corp., which makes electronic connection equipment, for $1.28 billion to sell more circuit boards and add production capacity. Sanmina said it will pay 1.4 of its shares for each Hadco share, valued at $71.31 a share based on Sanmina’s closing price Monday. That’s an 18% premium to the share price of Hadco, valuing the stock portion of the transaction at $992 million. Hadco had $288 million in debt as of Jan. 29. The combined company would have about $3 billion in annual sales, 70% of which would be to telecommunications companies, Sanmina President Randy Furr said. Shares of San Jose-based Sanmina closed up $1.63 at $50.94 on Nasdaq. Hadco, based in Salem, N.H., closed up 88 cents at $60.50 on the New York Stock Exchange.

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