U.S. markets closed
  • S&P 500

    4,232.60
    +30.98 (+0.74%)
     
  • Dow 30

    34,777.76
    +229.23 (+0.66%)
     
  • Nasdaq

    13,752.24
    +119.39 (+0.88%)
     
  • Russell 2000

    2,271.63
    +30.21 (+1.35%)
     
  • Crude Oil

    64.82
    +0.11 (+0.17%)
     
  • Gold

    1,832.00
    +16.30 (+0.90%)
     
  • Silver

    27.57
    +0.10 (+0.38%)
     
  • EUR/USD

    1.2167
    +0.0098 (+0.82%)
     
  • 10-Yr Bond

    1.5770
    +0.0160 (+1.02%)
     
  • GBP/USD

    1.3990
    +0.0098 (+0.70%)
     
  • USD/JPY

    108.5400
    -0.5450 (-0.50%)
     
  • BTC-USD

    58,643.02
    +2,042.51 (+3.61%)
     
  • CMC Crypto 200

    1,480.07
    +44.28 (+3.08%)
     
  • FTSE 100

    7,129.71
    +53.54 (+0.76%)
     
  • Nikkei 225

    29,357.82
    +26.45 (+0.09%)
     

Allegro Microsystems To Divest Thailand Manufacturing Facility For $30M

  • Oops!
    Something went wrong.
    Please try again later.
Anusuya Lahiri
·1 min read
  • Oops!
    Something went wrong.
    Please try again later.
  • Sensing and power semiconductor technology provider Allegro Microsystems Inc (NASDAQ: ALGMinked an agreement to divest its Thailand manufacturing facility to an undisclosed purchaser for $30 million.

  • The divestment is estimated to streamline Allegro’s back-end operations and boost gross margin.

  • Allegro previously announced its back-end facility consolidation plans as part of a multi-year strategic transformation to optimize its manufacturing footprint and reduce fixed costs.

  • Last quarter the company shared the successful production transfer from AMTC into its Manila, Philippines facility (AMPI) ahead of the slated time. The AMTC facility closure and divestment will complete the company’s transition to a fabless, asset-lite manufacturing model.

  • Allegro will incur a one-time non-cash impairment charge between $7 million and $9 million to the book value of the facility in the present quarter.

  • Allegro completed its 0 million IPO last November.

  • The stock lost around 6% in the last week.

  • Price action: ALGM shares are down 5.91% at $25.07 on the last check Thursday.

See more from Benzinga

© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.