Celestica to acquire Impakt to expand capabilities in aerospace, defense, communications markets

Canada-based design, manufacturing and supply chain solutions company Celestica, Inc., serving aerospace and defense, communications and enterprise markets, has announced it has agreed to acquire California, US-based Impakt Holdings, LLC, the company said.

Celestica will purchase Impakt for USD 329m, and the transaction is expected to be accretive to consolidated non-IFRS operating margin and overall ATS margin upon closing. The company intends to finance the purchase price, which is subject to specific adjustments set forth in the definitive agreement, with a combination of borrowings under the company´s current credit facility. The acquisition is expected to close in the fourth quarter 2018.

Through this acquisition, Celestica expects to gain significant, new capabilities in large-format, complex, high-mix manufacturing solutions for multiple industries, and broaden its precision component manufacturing, full system assembly, integration and machining capabilities. Celestica anticipates that it will benefit from Impakt´s full spectrum of specialized vertical services including its South Korea-based machining and manufacturing expertise. In conjunction with Celestica´s current capital equipment business, Impakt´s vertical integration will enable Celestica to provide more efficient end-to-end product life cycle solutions across a diverse set of markets.

Celestica (NYSE: CLS) (TSX: CLS) partners with companies in aerospace and defense, communications, enterprise, healthtech, industrial, semiconductor capital equipment, and smart energy to deliver solutions for their most complex challenges. A leader in design, manufacturing, hardware platform and supply chain solutions, Celestica brings global expertise and insight at every stage of product development.

Impakt Holdings LLC, a Graycliff Partners portfolio company, is a manufacturer providing manufacturing solutions for leading OEMs in the semiconductor and Organic Light Emitting Diode display industries. The company is a privately held global vertically integrated contract manufacturer.

Moelis and company LLC acted as exclusive financial advisor to Celestica, and Blake, Cassels and Graydon and Arnold and Porter as its legal counsel. Stifel and Lincoln International acted as financial advisors to Impakt.