© celestica Electronics Production | November 02, 2021
Celestica completes its acquisition of PCI
EMS provider Celestica has completed its previously announced acquisition of Singapore-based EMS provider, PCI Private Limited.
With the acquisition of PCI, Celestica gains five design- and manufacturing centers strategically located in Asia. The addition will advance the company’s high-growth, high-margin strategy by expanding its capabilities in key markets and strengthening its presence in Asia. Celestica states in a press release that by acquiring PCI, Celestica will be able to increase its engineering capabilities and talent, diversify its customer base, and expand its Advanced Technology Solutions (ATS) portfolio with high-growth programs, including full product development across the markets Celestica serves. The acquisition was financed with cash on hand and available borrowings of USD 220 million under Celestica’s current credit facility. Celestica says that it is currently pursuing the addition of a new term loan under the credit facility, which if obtained, will be used to repay the amounts borrowed under the existing revolver for the acquisition. PCI is expected to generate approximately USD 325 million of annual revenue in 2021 with low double-digit adjusted EBITDA margins and strong cash flows, as stated in the initial press release announcing the deal.