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Electronics manufacturing services provider Celestica will acquire the semiconductor equipment contract manufacturing operations of Brooks Automation for about $80 million.
The operations include the production of equipment front-end modules for wafer handling and transportation, vacuum transfer modules, and uniquely designed sub-systems for semiconductor capital equipment OEMs. The operations are based in Portland, Oregon and Wuxi, China.
The acquisition of Brooks' operations in Oregon and China will strengthen Celestica's industrial market offering, said Paul Nicoletti, executive vice president, diversified Markets and chief financial officer for Celestica, based in Toronto. With the acquisition, Celestica will be able to provide its customers "additional capability in complex mechanical and systems integration services," Nicoletti said.
The transaction is in line with Celestica's strategy to grow and diversify its revenue base in the industrial, aerospace and defense, healthcare, and green technology end markets, the EMS provider reported.
The deal is expected to close by the end of the second quarter. The Brooks' operations' senior management team and employees will join Celestica upon completion of the agreement.
Celestica's industrial division provides design, manufacturing, systems integration, and after-market services to OEMs in the automation and test equipment, kiosk, banking equipment, and semiconductor manufacturing industries.