Celestica to Buy PCI Ltd. in $300M Deal
TORONTO -- Celestica will buy Singapore-based PCI Ltd., a design, engineering and manufacturing solutions provider, for $306 million.
The deal is expected to close in the mid-fourth quarter of 2021, subject to necessary approvals.
The acquisition will expand Celestica's capabilities in key markets and strengthen geographic positioning. PCI has five manufacturing and design facilities across Asia.
The transaction price represents an adjusted EBITDA multiple of less than 7x (pre-anticipated synergies). Celestica expects the deal to be accretive to non-IFRS adjusted EPS in the first year.
"PCI is expected to generate about $325 million of annual revenue in 2021 with low double-digit adjusted EBITDA margins and strong cash flows," said Rob Mionis, CEO, Celestica. As a result, Celestica is raising its outlook for 2022 non-IFRS adjusted EPS growth compared to 2021 from 10% or more to 20% or more. It is also increasing its 2022 revenue outlook from a target of $6.0B or more to $6.3B or more, and its non-IFRS operating margin outlook to 4.0% to 5.0%.
Celestica reiterated its third quarter guidance for revenue in the range of $1.4 billion to $1.55 billion.
