© PCI Limited Electronics Production | September 22, 2021
Celestica expands by acquiring Singaporian EMS provider PCI
The Toronto headquartered electronics manufacturer has entered into a definitive agreement to acquire PCI Limited (PCI) for USD 306 million in cash from Platinum Equity.
Singapore-based PCI is a fully integrated design, engineering and manufacturing solutions provider with five manufacturing and design facilities across Asia. The company is expected to generate approximately USD 325 million of annual revenue in 2021 with low double-digit adjusted EBITDA margins and strong cash flows, a press release reads. The addition of PCI is expected to further strengthen Celestica’s approach towards engineering-focused engagements, including full product development in the areas of telematics, human machine interface (HMI), IoT and embedded systems. Celestica says that the transaction is expected to add over 20 complementary, blue-chip customers to its customer base, and lead to multiple synergies, including commercial cross-selling opportunities between both companies. “We are pleased to join forces with PCI, an engineering-led business that is aligned with our strategic objectives. This acquisition is intended to help us to further diversify our customer base and expand our ATS portfolio with high-growth programs. PCI is also expected to add strong annual revenue and cash flow generation that enhances our financial profile and outlook for 2022 and beyond. We believe that today, Celestica is as strong as it has ever been – both operationally and financially – and we are confident that PCI will help us build on our momentum and continue to generate significant value for all Celestica shareholders,” says Rob Mionis, President and CEO of Celestica, in the press release. “Celestica is an industry leader with complementary capabilities and a shared focus on engineering and innovation. We are excited to leverage Celestica’s global footprint and significant resources to rapidly expand our business while bringing our new and differentiated engineering capabilities to their already impressive engineering team. Together, we intend to push the boundaries of innovation in our industry and deliver even stronger, more comprehensive solutions to our world class customers,” adds EL Teo, CEO of PCI. The transaction is expected to close in mid-fourth quarter of 2021 subject to receipt of an applicable regulatory approval and satisfaction of other customary closing conditions. With the addition of PCI, Celestica’s Advanced Technology Solutions (ATS) segment is expected to generate annual revenue in 2022 of approximately USD 2.8 billion, with a segment margin of approximately 5.5%. In addition, Celestica is raising its 2022 revenue outlook from a target of USD 6 billion or more, to USD 6.3 billion or more.