Trio-Tech to buy Universal Systems

Electronic News, August 11, 1997

San Fernando, Calif.--Trio-Tech International signed a letter of intent to acquire Universal Systems, a privately-held semiconductor equipment manufacturer located in Campbell, Calif.

Trio-Tech International will pay a combination of cash, stock and options to Universal Systems' shareholders. Dale Cheesman, controller for Trio-Tech International, said no agreement had been made on the purchase price. Universal Systems will operate as a wholly-owned subsidiary of Trio-Tech International. Universal Systems is profitable and has annual revenue of between $3 million and $4 million, Mr. Cheesman said.

Universal Systems was formed in June 1995 as a consulting and service company focused on wet processing semiconductor manufacturing technologies. One year later, the company started manufacturing equipment. Universal's equipment targets front-end wafer and substrate processing though manual, semiautomated and automated wet process stations that etch, strip, clean and plate silicon wafers.

Universal Systems' founder and president, Tony DePiero, signed a long-term contract to remain president of Universal Systems.

Universal Systems currently operates in a 6,000-square-foot manufacturing facility and anticipates expanding into a 20,000-square-foot manufacturing facility in the coming months.

"In the coming years, we anticipate that Universal Systems, as well as Trio-Tech's Artic Chuck wafer test systems, will significantly enhance the company's U.S.-based sale," said Yong Siew Wai, president and CEO of Trio-Tech.

Mr. DePiero brings nearly 20 years of wafer processing experience to Trio-Tech. He built his previous company, Universal Plastics, to more than $15 million in sales prior to selling the operations to SubMicron Systems Corp. in June 1994. That sale resulted in a non-compete agreement with SubMicron which has since expired, according to Mr. Cheesman.

The acquisition is subject to the final audit by Trio-Tech's accountants, Deloitte & Touche LLP, and approval by Trio-Tech International's board of directors. It is anticipated that the acquisition will be completed within 30-60 days.

"Universal Systems will be able to leverage off of Trio-Tech's established presence in Southeast Asia," Mr. DePiero said. "This existing infrastructure will be critical to the growth of Universal Systems as it increases its penetration into the growing automated wet process marketplace."