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Bose Corporation and Flex announced they have reached an agreement to expand their existing strategic partnership. As part of the new agreement, ownership and operation of Bose's manufacturing and development operations in San Luis, Mexico and Penang, Malaysia will transfer to Flex, and Flex will assume current and planned Bose production in both facilities. The agreement also grants Bose greater access to Flex's supply chain solutions, accelerating speed-to-market around the world.
"Bose has a diverse product line in ever-changing industries," said Bryan Fontaine , executive vice president, Bose Global Operations. "We've always used independent manufacturers to support our global business, and have used Flex in that capacity for over a year. Now, we've chosen them to assume the work in two of our plants because their deep expertise and infrastructure will help us keep pace with our current and future product plans, and meet our projected growth in current and emerging markets. They're also innovators and can meet our quality standards. But just as importantly, we think that Flex's corporate culture is most aligned with ours, and that's important for our employees."
Bose's San Luis and Penang plants were opened in 1990 and 2013, respectively. Their production includes select headphones, wireless speakers, home theater systems and professional products. Combined, they have approximately 3,500 employees, and under the terms of the agreement, Flex will retain the vast majority of both teams.
"Bose is an iconic leader in audio performance, innovation and quality," said Mike Dennison , president, Consumer Technology Group at Flex. "We're pleased to expand our strategic relationship, and help them get to market at an even faster rate with our world-class global supply chain solutions."
Operations will transfer upon the transaction's closing. It's subject to the satisfaction of customary conditions, including regulatory approvals, and is scheduled to occur during 2016. Bank of America Merrill Lynch acted as Bose's exclusive financial advisor in connection with the sale. Additional information, including financial and transition details, will remain confidential.
About Bose Corporation
Bose Corporation is a privately held company, founded in 1964 by Dr. Amar G. Bose , then professor of electrical engineering at the Massachusetts Institute of Technology . Headquartered in Framingham, Massachusetts , Bose serves millions of global customers through its operations in North America , Europe and Asia Pacific , supported by 25 international subsidiaries, Bose.com, hundreds of Bose stores, and independent, authorized e-commerce and brick-and-mortar retailers around the world. Today, Bose has over $3.5 billion in annual sales, and offers a full line of wireless mobile and home products, automotive sound systems, professional sound systems, and commercial headsets for professional sports and pilots. Across industries and continents, Bose is recognized as a leader in performance, innovation and quality.
Flextronics International Ltd. is a leading sketch-to-scale™ solutions company that designs and builds intelligent products for a connected world. With approximately 200,000 professionals across 30 countries and a promise to help the world Live smarter™, the company provides innovative design, engineering, manufacturing, real-time supply chain insight and logistics services to companies of all sizes in various industries and end-markets.