Allegro MicroSystems’ Thai cleanroom sale to InnoLight Technology

Allegro MicroSystems A&T cleanroom, Thailand
“By hiring ATREG, we were able to expose our Thai cleanroom site to a far wider and more sophisticated audience than would have been possible if it was only sold as a real estate asset. ATREG brought multiple credible parties to the table and provided a competitive environment that led to multiple offers for the site. As a result, we achieved a transaction value that exceeded our expectations and found a buyer who will take advantage of the existing infrastructure. I would recommend ATREG to any company wishing to dispose of a manufacturing asset.”
Senior Vice President, Operations & Quality

Challenge

Allegro MicroSystems made a strategic decision to shift its back-end manufacturing footprint to a larger site located in the Philippines and dispose of its Thai cleanroom based in Saraburi Province, north of Bangkok, originally used for the assembly and testing of power IC products for the automotive industry.

Solution

After exposing the Thai manufacturing asset to a diverse global audience, ATREG brought multiple credible parties to the table and provided a competitive environment that led to multiple offers for the site. The facility was eventually purchased by Chinese optical communication company InnoLight Technology in August 2021.

Business Result

• Allegro MicroSystems achieved a transaction value that exceeded their expectations – approximately $30 million before fees and expenses – and found a buyer who will take advantage of the existing infrastructure.
• With the successful transfer of production from Thailand into its Manila, Philippines facility, Allegro MicroSystems was able to optimize its manufacturing footprint and reduce its fixed costs.