Celestica to acquire Brooks semiconductor operations
Acquisition to strengthen Celestica's capabilities in complex mechanical and systems integration services.Comments Off on Celestica to acquire Brooks semiconductor operations
Toronto — Celestica Inc. announced that it will acquire the semiconductor equipment contract manufacturing operations of Brooks Automation for $80 million in cash. Based in Portland, Oregon and Wuxi, China, the semiconductor operations specialize in manufacturing complex mechanical equipment and providing systems integration services for semiconductor equipment manufacturers. Its capabilities include the production of equipment front-end modules for wafer handling and transportation, vacuum transfer modules and sub-systems for 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 company says 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.