SGI To Sell Few Manufacturing Assets For $6 Mln; To Take $2 Mln Charges In Q2

(RTTNews) - SGI (SGI), a high-performance computing and Big Data company, Wednesday said Jabil Circuit, Inc. (JBL) will buy its primary manufacturing facility, located in Chippewa Falls, and certain other manufacturing assets for about $6 million in cash. The deal is expected to close in February 2014. Following the asset sale and transfer of personnel, SGI is expected to incur cash and non-cash charges of about $2 million in its second quarter of fiscal 2013.

The transition to Jabil will be implemented as a "manage in place" model, which will make use of the existing SGI facilities and personnel. SGI expects that about 130 of its manufacturing personnel in Chippewa Falls will transfer to Jabil, and no other job cuts or transfers are anticipated as a result of the transactions.