JDSU (JDSU) signed a definitive agreement to sell its manufacturing operations located in Ottawa, Ontario, to Fabrinet, its contract manufacturing partner.
Terms weren't disclosed, but the move continues JDSU's rebranding effort. The company's shares have surged since JDSU dropped its former name, JDS Uniphase, and set out a big restructuring plan last November.
"This transaction marks the final phase of our plan to transition all Optical Communications assembly manufacturing to Asia," said Debbie Shoquist, vice president of global operations for JDSU. "We believe that with additional resources from Fabrinet and a cohesive transfer team, we will ensure a smooth transition for our employees and our customers."
The transaction is expected to close in the third quarter of fiscal 2006. Upon close, Fabrinet will manage ongoing production and the Asian transfer activities currently performed by the Ottawa site. Nonmanufacturing activities at the Ottawa site are unaffected by this agreement.
Late Tuesday, JDSU was flat at $2.98.