Electronics Production | July 10, 2007
Freescale's East Kilbride site for sale
Freescale wants to sell its fab in East Kilbride, Scotland.
The employees at the Scottish East Kilbride fab of Freescale were last Friday told that the company intends to sell the entire factory. There are at the moment 1250 people working at the East Kilbride plant. Last year Freescale was bought by a consortium of private equity funds last year, led by Blackstone, in a deal which valued (many said over-valued) the company at $17.6bn. Subsequently Freescale was loaded up with nearly $6bn worth of debt in the form of 'toggle bonds' a which are 'covenant-lite' junk bonds, which involved Freescale in large interest payments. Of the 1,200 jobs at the site 900 are in manufacturing and 300 in development.