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ACT Manufacturing completed its merger with CMC Industries in 1999, creating an ACT-branded contract electronics manufacturer with about $580 million in trailing revenue and nearly 1 million square feet of manufacturing capacity, according to contemporary reporting by EE Times. The deal expanded ACT’s North American footprint and added CMC’s engineering-oriented operations, but the available 1999–2000 figures show the company’s immediate scale and early results—not its long-term standing in the industry.
What happened in the ACT–CMC merger?
ACT Manufacturing Inc. and CMC Industries Inc. signed a merger agreement in 1999. Under its terms, each CMC share would be exchanged for one-half share of ACT stock, subject to shareholder approval. At the time the proposed transaction was announced, the combined businesses had about $582 million in trailing revenue, as reported by EE Times.
The merger was completed by August 1999. The combined company kept the ACT name. Closing coverage put its trailing revenue at approximately $580 million and its manufacturing capacity at nearly 1 million square feet. An analyst cited by EE Times projected revenue of $800 million for the following year; that was a forecast, not a reported result.
What facilities and capabilities did CMC add?
CMC brought facilities in Santa Clara, California; Corinth, Mississippi; and Hermosillo, Mexico. They joined ACT’s existing operations in Hudson, Massachusetts; Atlanta; and Dublin, Ireland.
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| Company before the merger | Reported locations | What the footprint added |
|---|---|---|
| CMC Industries | Santa Clara, California; Corinth, Mississippi; Hermosillo, Mexico | More North American capacity, including a Mexican manufacturing site |
| ACT Manufacturing | Hudson, Massachusetts; Atlanta; Dublin, Ireland | Existing U.S. operations and European production in Dublin |
The expanded network gave ACT production sites in several North American regions while preserving a European presence. Contemporary reports describe a broader footprint; they do not establish the comparative costs or output of each individual plant.
Why did the companies say the deal made strategic sense?
Management presented the transaction as a way to combine scale with engineering-led contract manufacturing and stronger access to original equipment manufacturer (OEM) programs. ACT chairman and chief executive John A. Pino said the merger would strengthen the company’s ability to provide “high quality, value-added contract manufacturing services” to existing and future customers globally. CMC chief executive Matthew Landa said ACT’s focus on programs requiring substantial engineering expertise aligned with CMC’s aim to build flexible, engineering-driven operations near important American OEM technology centers.
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Those statements explain the companies’ rationale, not proof that every anticipated customer or shareholder benefit followed. The reported facility network and revenue provide concrete evidence of increased scale; the supplied contemporary accounts do not quantify engineering capacity or identify specific new customer programs attributable to the merger.
How large was ACT after closing, and what did it report next?
The closing figures put ACT at approximately $580 million in trailing revenue and nearly 1 million square feet of manufacturing capacity in 1999. These measures indicate a substantial combined operation, but they do not by themselves establish that ACT ranked among the industry’s largest manufacturers: the contemporary figures provided here do not include a market-wide comparison.
ACT’s fiscal-1999 report, covered by EE Times in 2000, recorded revenue of $696.3 million, up from $592.5 million in fiscal 1998. Net income rose to $6.2 million from $3.1 million over the same fiscal-year comparison. These annual results are distinct from the approximately $580 million trailing-revenue estimate reported at the merger’s completion.
Management said CMC integration and the assimilation of GSS/Array assets were largely complete by February 2000. That is a reported integration milestone, not evidence on its own of the merger’s longer-term performance.
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What changed financially when the merger closed?
After closing, ACT secured a $107 million credit line, replacing a $55 million facility, according to contemporary EE Times coverage. The larger credit line increased the financing available to the company, but the reported figure does not show how much ACT borrowed or how the facility was used.
Pino described the completed transaction as “a landmark achievement” and said both sets of shareholders had been enthusiastic about the opportunity created by the companies’ combined strengths. That was management’s characterization of the deal at closing; the financial results reported for fiscal 1999 offer an early performance measure, while the available contemporary accounts do not establish the merger’s long-term outcome.
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