Sanmina-SCI Corp. (BB-/Stable/--) announced a three-year supply agreement, to provide IBM Corp. (A+/Stable/A-1) with outsourced manufacturing services, that is expected to result in revenues in excess of $3.6 billion over the term of the agreement. IBM will outsource manufacturing of portions of its low- and mid-range server products, workstations, and custom configuration of PC notebooks for customers in the Americas, Europe, the Middle East, and Africa. Sanmina-SCI will acquire IBM's manufacturing operations that support these products in Mexico and Scotland. Standard&Poor's Ratings Services said the announcement will not affect its rating or outlook on Sanmina-SCI, which already incorporate the expectation for such transactions that improve utilization levels and enhance revenue growth.
