- Celestica Inc. (CLS) has completed its acquisition of the Singapore-based PCI Private Limited, an electronics manufacturing services provider in Asia
- The acquisition of PCI advances Celestica’s high-growth, high-margin strategy by expanding its capabilities in key markets and strengthening its presence in Asia to serve a diverse customer base across the U.S. and Europe
- The acquisition was financed with cash on hand and available financing of $220 million under Celestica’s current credit facility.
- With the addition of PCI, Celestica’s advanced technology solutions portfolio is expected to generate annual revenue of approximately $2.8 billion for 2022, with a segment margin of approximately 5.5 per cent
- Celestica is currently pursuing a new term loan under the credit facility that will be used to repay the amounts borrowed under the existing revolver for the acquisition
- Celestica Inc. (CLS) is up 4.754 per cent and is trading at $12.78 per share at 2:02 p.m. ET
Celestica Inc. (CLS) has completed its acquisition of the Singapore-based PCI Private Limited, an electronics manufacturing services provider in Asia.
The acquisition of PCI advances Celestica’s high-growth, high-margin strategy by expanding its capabilities in key markets and strengthening its presence in Asia to serve a diverse customer base across the U.S. and Europe.
The acquisition is expected to grow the company’s non-IFRS adjusted earnings per share (EPS) in the first year, with returns anticipated to exceed Celestica’s cost of capital by the second year.
Celestica raised its outlook for 2022 non-IFRS adjusted EPS growth compared to 2021 from 10 per cent or more to 20 per cent or more.
PCI has five design and manufacturing centers strategically located in Asia, and more than 50 years of operational expertise with a deep understanding of competitive dynamics in the Asia Pacific region.
With the addition of PCI, Celestica’s advanced technology solutions portfolio is expected to generate annual revenue of approximately $2.8 billion for 2022, with a segment margin of approximately 5.5 per cent.
In addition, Celestica is raising its 2022 revenue outlook from a target of $6 billion or more, to $6.3 billion or more, and its non-IFRS operating margin outlook to 4 to 5 per cent.
The acquisition was financed with cash on hand and available financing of $220 million under Celestica’s current credit facility.
Celestica is currently pursuing a new term loan under the credit facility that will be used to repay the amounts borrowed under the existing revolver for the acquisition.
Celestica Inc. (CLS) is up 4.754 per cent and is trading at $12.78 per share at 2:02 p.m. ET.
