The deal extends Celestica’s market reach
TORONTO—Celestica Inc. is paying $80 million for Brooks Automation’s contract manufacturing operations in Portland, Ore. and Wuxi, China.
The Brooks plants manufacture mechanical equipment and provide systems integration services for semiconductor equipment manufacturers.
Celestica, a Toronto-based electronics manufacturing services (EMS) company, said the acquisition (through subsidiaries) supports its strategy to grow in the industrial, aerospace and defense, healthcare and green technology markets.
The plants produce equipment front-end modules for wafer handling and transportation, vacuum transfer modules and custom designed sub-systems for semiconductor capital equipment OEMs.
“The acquisition of Brooks’ operations in Oregon and China will significantly strengthen our industrial market offering,” said Paul Nicoletti, Celestica’s CFO and executive vice-president of diversified markets. “The design, engineering, and technical depth of these operations, coupled with their capital equipment supplier management expertise, are an excellent addition to our existing global capabilities.”
Steve Schwartz, president and CEO of Brooks, called the sale of the contract manufacturing business “a significant step” as the company continues to shift its focus to technology driven solutions for controlled temperature and pressure environments.
“We plan to use the cash generated from this transaction in the initiatives that will leverage our existing technology capabilities, particularly into market sectors other than wafer front end semiconductor capital equipment,” he said in a statement.
Brooks Automation’s contract manufacturing business generated revenues of $135 million for the six months ending March 31 and currently employs about 450 people. Senior management team and employees will join Celestica once the deal is closed.