TORONTO, ON, CANADA -- Celestica has completed its purchase of the business assets of Lorenz Inc. and Suntek Manufacturing Technologies, SA de CV, collectively known as Karel Manufacturing, a Mexico-based manufacturing services company.

Celestica will spend about $15 million for Karel, and the transaction is scheduled to close in the current quarter, company executives said.

As part of the transaction, Celestica has acquired Karel's manufacturing assets in Mexicali, Mexico, and Calexico, CA. Through this agreement, Celestica will gain additional vertical build-to-print capabilities in the areas of complex wire harness assembly, systems integration, sheet metal fabrication, welding and machining. The operation is Nadcap1-certified with focused expertise serving aerospace and defense customers. Approximately 400 Karel employees will be joining Celestica from across the two operations.

Celestica said it would move to Karel certain product builds it currently outsources.

"This acquisition supports our strategy to accelerate our growth in key markets through the addition of value-added capabilities and services," said Jack Lawless, executive vice president, diversified markets, Celestica. "This further enables us to reduce supply-chain complexity and cost for our customers across a broad range of markets, including aerospace and defense, semiconductor capital equipment, industrial, healthcare, renewable energy, communications and enterprise."

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