TORONTO -- Celestica today announced an agreement to acquire D&H Manufacturing, a manufacturer of precision machined components and assemblies.

Fremont, CA-based D&H primarily provides manufacturing and engineering services to the semiconductor capital equipment market. The business generates approximately $80 million in annual revenue and currently employs approximately 350 people. The $70 million deal is expected to close in the current quarter. Celestica will finance the deal through existing credit facilities or with cash on hand.

"The acquisition further strengthens Celestica's diversified markets offering and will allow us to provide our customers with additional capability in large scale and high quality precision machining," said Craig Muhlhauser, Celestica president and chief executive. "The D&H team brings extensive engineering and technical depth to Celestica that will complement our capabilities in complex mechanical and systems integration services."

For Celestica, it's the second acquisition in the past year targeting the semiconductor equipment market. A year ago, the firm closed on its deal to buy Brooks Automation, which builds mechanical equipment and performs systems integration.