Advertisement
YOU ARE HERE: LAT HomeCollections

Kingston to Sell 2 Units to Taiwan Manufacturer

Acquisition: In sale to Delta Group, the network and storage outfits will stay in O.C.

September 24, 1997|JAMES S. GRANELLI | TIMES STAFF WRITER

FOUNTAIN VALLEY — Kingston Technology Corp. said Tuesday that it has agreed to sell its networking business and storage products units to a major Taiwanese manufacturer for an undisclosed sum.

The two units, which generate a total of $70 million in revenue a year, will operate as a subsidiary of Delta Group and will remain based in Orange County, said Frank Hsiung, executive vice president at Delta's U.S. headquarters in Fremont.

No jobs will be lost, Hsiung said, and current managers will remain in place. He said he expects to add about 10 employees to the two units, raising the total work force to about 100 employees.

Kingston, which had $1.3 billion in revenue last year, and Delta, with $1 billion in revenue, said the deal should be completed by the end of the year.

Hsiung said Delta, which designs and makes electronic components and equipment for computer manufacturers, has long been one of Kingston's suppliers and has maintained friendly relations with the company.

Kingston, which was sold last year to Softbank Corp. in Japan, is a leading maker of memory products for personal computers, notebooks, servers, workstations and printers.

Kingston's two co-founders became heroes to workers everywhere last year when they set aside $100 million from Kingston's sale to Softbank to pay employees bonuses that, for most of them, were twice their salaries.

Advertisement
Los Angeles Times Articles
|
|
|