Electronics Production | December 08, 2005
Retiring Flextronics boss joins KKR
Kohlberg Kravis Roberts & Co. (KKR) announced today that it has appointed Michael E. Marks, formerly Chief Executive Officer of Flextronics, as a Member of the Firm.
Mr. Marks will join the Firm on January 1, 2006 following his retirement as Chief Executive Officer of Flextronics, a leading global Electronics Manufacturing Services (EMS) provider, as part of a planned succession process. At that time, Mr. Marks will assume the position of non-executive Chairman of Flextronics. Henry R. Kravis and George R. Roberts, Founding Members of KKR, said, “Michael Marks is a true visionary. His outstanding track record in creating value and a broad network of contacts in the technology industry combined with his extensive experience across Asia will be tremendous assets for KKR as we focus on building a premier technology portfolio in the private equity business.” Under Mr. Marks' leadership, Flextronics became the global leader in the EMS industry, with revenues of $15.9 billion in fiscal 2005, more than 100 facilities and nearly 100,000 employees in over 30 countries on five continents. During his tenure as CEO, Mr. Marks executed a significant turnaround for Flextronics and influenced the evolution of the industry as a whole. Having led over 70 acquisitions, including the establishment of substantial operations in China and India, Mr. Marks successfully steered Flextronics to a more diversified, integrated business model that builds on core manufacturing capabilities to include complete vertically-integrated services such as design, logistics and components. Mr. Marks stated, “In recent years, the technology sector has emerged as an area of great potential for private equity investment. KKR's proven philosophy of partnering with management to invest in key areas of a business with the objective of long-term growth will be a formula for success in technology investing in the years to come. I could not be happier to have the opportunity to work alongside KKR's enormously talented professionals to establish the firm as a leading investor in the sector.” KKR has committed approximately $1 billion to technology businesses in the last six months. These investments include SunGard Data Systems and Avago Technologies (the Semiconductor Products Group of Agilent Technologies, Inc.). SunGard and Avago are considered the two largest private equity technology investments in history, with transaction prices of $11.4 billion and $2.7 billion, respectively. Past KKR technology industry investments include: Amphenol, RELTEC, Wincor Nixdorf, Tenovis, and Zhone Technologies. Prior to joining Flextronics in 1994, Mr. Marks was President and CEO of Metcal, Inc., a precision heating instrument company in Menlo Park, CA. He became a Director of Flextronics in 1991. Mr. Marks received a B.A. and M.A. from Oberlin College and an M.B.A. from Harvard Business School.