Circuits Assembly Online Magazine - Celestica to Acquire Impakt, Extend Reach into OEM Market

TORONTO -- Celestica today announced a definitive agreement to acquire Impakt Holdings, a maker of processing equipment for the semiconductor and other industries, for $329 million.

The transaction is expected to be accretive to consolidated non-IFRS operating margin.

Impakt also builds for the solar and OLED display industries. It was founded in South Korea in 1977, and is now headquartered in Santa Clara, CA.

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. In addition, Celestica anticipates that it will benefit from Impakt’s full spectrum of specialized vertical services including its South Korea-based machining and manufacturing expertise.

"The acquisition of Impakt will enhance Celestica’s position as the largest end-to-end capital equipment manufacturer in our industry," said Rob Mionis, president and CEO, Celestica. "Through Impakt’s extensive capabilities, we will be able to provide customers with even deeper and broader capital equipment manufacturing services including in-region and vertical offerings. Impakt will also expand Celestica’s second-largest end-market within our growing $2.2 billion ATS segment, and is well aligned to our company strategy of expanding and diversifying our overall revenue and margin mix through targeted investments and acquisitions.”

“Impakt’s deep expertise in its core markets will fit well with Celestica and its leading position in capital equipment manufacturing,” said Dan Rubin, CEO, Impakt. “Together, Impakt and Celestica have the opportunity to create compelling end-to-end solutions for our customers across multiple markets and in key geographies.”

Celestica also reiterated its third-quarter outlook for the period ended Sept. 30. In July, the company disclosed its goal of non-IFRS operating margin in a target range of 3.5% to 4.0% over the next one to three years. The company increased and accelerated this target range to 3.75% to 4.5% over the next 12 to 18 months.