Celestica Inc (TSX, NYSE: CLS) has agreed to acquire Atrenne Integrated Solutions Inc, a New Hope, Minnesota-based designer and maker of ruggedized electromechanical solutions primarily for military and commercial aerospace applications. Celestica will buy the company for about $172 million (US$139 million) in cash. The deal is expected to close in the second quarter. Celestica, a Toronto-based provider of electronics manufacturing services, said the acquisition will broaden and diversify its capabilities in the aerospace and defense markets. Celestica has been a portfolio investment of Canadian private equity firm Onex Corp since 1996.
Celestica to Acquire Atrenne Integrated Solutions
January 24, 2018
Acquisition to broaden Celestica’s design and manufacturing capabilities in the Aerospace and Defense market
TORONTO, Jan. 24, 2018 (GLOBE NEWSWIRE) — Celestica, Inc. (NYSE:CLS) (TSX:CLS), a leader in design, manufacturing and supply chain solutions for the world’s most innovative companies, today announced that it has entered into a definitive agreement to acquire Atrenne Integrated Solutions, Inc.
Atrenne is a leading designer and manufacturer of ruggedized electromechanical solutions serving multiple markets, primarily for military and commercial aerospace applications. Atrenne’s integrated solutions serve a full spectrum of next-generation, mission-critical applications on over 100 military and aerospace programs deployed globally. Its proprietary designs enable high-performance defense and security platforms to operate in harsh environments and support the continued growth of commercial aviation with the highest levels of quality and safety.
Headquartered in the United States, Atrenne has two US-based, ITAR-certified sites (Brockton, Massachusetts and New Hope, Minnesota) and a site in Xiamen, China.
“This acquisition will advance our strategic direction to expand our capabilities, improve our diversification and bolster our leadership position within Aerospace and Defense,” said Rob Mionis, President and Chief Executive Officer, Celestica. “Our goal is to broaden our comprehensive portfolio of end-to-end product lifecycle solutions across all of the markets we serve to deliver enhanced value to our customers.”
Celestica will purchase Atrenne, on a cash-free and debt-free basis, for US$139 million in cash (subject to specific adjustments as set forth in the definitive agreement) using a combination of cash on hand and its revolving credit facility. The acquisition is expected to close in the second quarter 2018, subject to receipt of applicable regulatory approvals and satisfaction of other customary closing conditions.
Celestica enables the world’s best brands. Through our recognized customer-centric approach, we partner with leading 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 – from the drawing board to full-scale production and after-market services. With talented teams across North America, Europe and Asia, we imagine, develop and deliver a better future with our customers.
About Atrenne Integrated Solutions, Inc.
Atrenne Integrated Solutions is an advanced, vertically-integrated, component and system provider serving aerospace, defense, computing, communications, and other technology-driven industries. Atrenne delivers integrated components, electronic packaging, fabricated metal, electronic assemblies and value-add build-to-print manufacturing services to industrial markets across the globe. With more than 40 years of experience, Atrenne provides innovatively engineered products and services throughout the program lifecycle, from concept to manufacturing to obsolescence management. Atrenne is proud to provide customers with fully-tested, reliable, electromechanical solutions on-time and with world-class quality. Atrenne is headquartered in the United States.
For more information, visit http://www.atrenne.com/
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Photo courtesy of Celestica Inc