NEW YORK-World Access Inc. announced March 22 it completed the sale of its manufacturing
operations in Alpharetta, Ga., to U.S. Assemblies in Georgia Inc., a wholly owned subsidiary of The Matco Electronics
Group Inc.
“Outsourcing the manufacturing function is consistent with (our) long-term plan to enhance (our)
competitiveness and is an integral component of our recent consolidation efforts,” Lindsay Wallace, president of
the World Access Equipment Group, said.
The World Access Equipment group develops and markets digital
switches, billing and network management systems, cellular base stations, fixed wireless local loop systems, intelligent
multiplexers, digital microwave radio systems and other telecommunications network products.
“Selling the
company’s manufacturing operations to an experienced, full service contract manufacturer eliminates the company’s
need to invest significant capital in facilities, equipment and inventories, and (it also) reduces the risk of operating
losses during periods of low production,” Wallace said.
Matco Electronics is a privately held company with
annual revenues of about $400 million. It operates 12 production plants in nine states and Mexico that fabricate and
assemble electronics components and circuit boards for original equipment manufacturers.
Under terms of the sale,
Matco purchased all of World Access’ manufacturing equipment and hired 50 World Access employees. Matco also
assumed World Access’ lease obligations for 38,000 square feet of the Alpharetta plant. World Access will continue to
use the remaining 15,000 square feet for its product laboratory and testing operations and its Galaxy Engineering
Services Division.
World Access said it will use cash proceeds from the sale to pay off a $7 million industrial
revenue bond obligation in the second quarter.
