Ultra Clean buys Dynamic Manufacturing Solutions

Conveniently situated adjacent to UCT’s existing weldment facility in Austin, DMS offers a wide range of weldment solutions, including build-to-print outsourcing, turnkey design, and product realization. DMS also provides contract manufacturing services in welding solutions, UHP weld assemblies, gas and chemical delivery solutions, process and facility modules, engineering services, and electrical and mechanical design and assembly solutions primarily to the semiconductor industry. UCT CEO Jim Scholhamer said, "The acquisition of DMS further enhances UCT's strong position in the gas delivery market. DMS has a history of providing top quality fabrication of ultra-high purity weldments, which is highly complementary to UCT's existing offerings and operations. This transaction should allow us to leverage economies of scale, strengthen our manufacturing capabilities and enhance our competitive position. We expect the acquisition to improve UCT's profitability and be accretive to earnings." "The combination of DMS and UCT will result in an even stronger presence in the weldment segment of the WFE industry and significantly strengthens our ability to provide high-value solutions for our customers," said Robb Misso, co-founder and CEO of DMS. "In my new position as vice president of Global Weldments for UCT, I am excited at the prospect of capitalizing on the many opportunities to grow our combined weldment business on a global scale." Under the terms of the agreement, UCT paid USD 30 million in cash for DMS and UCT may pay up to USD 12.5 million in additional cash earn-out payments to the former owners of DMS if the combined weldment business achieves certain gross profit and gross margin targets for the twelve months ending June 26, 2020. Ultra Clean Holdings was established in 1991 in Hayward, California, and employs more than 3800 people worldwide.