CELESTICA TO ACQUIRE BROOKS AUTOMATION'S SEMICONDUCTOR EQUIPMENT CONTRACT MANUFACTURING OPERATIONS
TORONTO, April 21, 2011 /PRNewswire via COMTEX/ --
Acquisition to strengthen Celestica's capabilities in complex mechanicaland systems integration services
Celestica Inc. (NYSE: CLS) (TSX: CLS), a global leader in the delivery of end-to-end product lifecycle solutions, today announced that it has agreed to acquire the semiconductor equipment contract manufacturing operations of Brooks Automation. The operations, based in Portland, Oregon and Wuxi, China specialize in manufacturing complex mechanical equipment and providing systems integration services for some of the world's largest semiconductor equipment manufacturers.
The operations' capabilities include the production of equipment front-end modules for wafer handling and transportation, vacuum transfer modules and uniquely designed sub-systems for industry-leading semiconductor capital equipment OEMs. The business generated revenue of approximately $135 million for the six months ended March 31, 2011, and currently employs approximately 450 people.
"The acquisition of Brooks' operations in Oregon and China will significantly strengthen Celestica's industrial market offering, providing our customers with additional capability in complex mechanical and systems integration services," said Paul Nicoletti, Executive Vice President, Diversified Markets and Chief Financial Officer, Celestica. "The design, engineering, and technical depth of these operations, coupled with their capital equipment supplier management expertise, are an excellent addition to Celestica's existing global capabilities."
The transaction supports Celestica's strategy to grow and diversify its revenue base in the Industrial, Aerospace and Defense, Healthcare and Green Technology end markets. The purchase price is expected to be approximately $80 million and will be financed from either the company's credit facility or from cash on hand. The closing date is anticipated to be in the second quarter. The operations' senior management team and employees will join Celestica upon completion of the agreement. The Semiconductor manufacturing business will continue to be managed by Greg Marvell as Vice President and General Manager.
Celestica's Industrial division provides design, manufacturing, systems integration and after-market services to OEMs in the automation and test equipment, kiosk, banking equipment and semiconductor manufacturing industries.
Celestica is dedicated to delivering end-to-end product lifecycle solutions to drive our customers' success. Through our simplified global operations network and information technology platform, we are solid partners who deliver informed, flexible solutions that enable our customers to succeed in the markets they serve. Committed to providing a truly differentiated customer experience, our agile and adaptive employees share a proud history of demonstrated expertise and creativity that provides our customers with the ability to overcome any challenge.
For further information on Celestica, visit its website at www.celestica.com
Safe Harbour and Fair Disclosure Statement
Statements contained in this press release which are not historical facts are forward-looking statements. Such forward-looking statements are predictive in nature, and may be based on current expectations, forecasts or assumptions involving risks and uncertainties that could cause actual outcomes and results to differ materially from the forward-looking statements themselves. Such forward-looking statements may, without limitation, be preceded by, followed by, or include words such as "believes," "expects," "anticipates," "estimates," "intends," "plans," or similar expressions, or may employ such future or conditional verbs as "may", "will", "should," or "would," or may otherwise be indicated as forward-looking statements by grammatical construction, phrasing or context. Forward-looking statements contained herein include the parties' ability to close the transaction, the time of closing, the purchase price and Celestica's funding thereof, employment matters relating to the transaction, the impact of the acquisition and the company's strategy in these end markets. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the U.S. Private Securities Litigation Reform Act of 1995 and in any applicable Canadian securities legislation. Forward looking statements are not guarantees of future performance. Risks and uncertainties relating to forward-looking statements contained herein include the closing conditions to the transaction not being satisfied in a timely manner or at all, the purchase price varying from the expected amount, Celestica determining to use alternative sources of funds and the other risks and uncertainties, as well as other information related to the Company, discussed in the Company's various public filings at www.sedar.com and www.sec.gov, including our Annual Report on Form 20-F and subsequent reports on Form 6-K filed with the Securities and Exchange Commission and our Annual Information Form filed with the Canadian Securities Commissions. Forward-looking statements are provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. Except as required by applicable law, we disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE Celestica Inc.