Advances Celestica's High-Growth,High-Margin Strategy by Expanding Capabilities in Key Markets and Strengthening Presence in Asia.
Building on Portfolio Transformation and Expanding in High-Growth Markets
Strengthens approach toward engineering-focused engagements, including full product development in the following areas:
Radio Frequency: supports telematics solutions like fleet management
Human Machine Interface (HMI): commercial control panels, display tablets for industrial machines, voice recognition and AI capabilities
Internet of Things (IoT): including embedded radio modules and sensors used in asset tracking, data harvesting
Embedded systems: including Single Board Computers, Computers on Modules (COMs)
Adds differentiated engineering and design capabilities, as well as IP, in electronics, radio frequency (RF) solutions and proprietary embedded products
Diversifies customer base with addition of 20+ customers
Enhances ATS business and expands portfolio to better support customers through product lifecycles
Adds Compelling, High-Growth Business
~$325M of annual revenue (2021E)
100% of revenue
with 10% 3-yr revenue CAGR
from diversified markets
2021 Projected Adj. EBITDA
Strong free cash flow
Margin of 13.9% 1
and ROIC
Enhances Capabilities in Attractive Growth Markets
Transaction Highlights
Acquiring PCI from
Platinum Equity for
$306M
in cash.
Attractive EV / EBITDA ratio
less than 7x
Accretive to non-IFRS adjusted EPS in the first year; ROI expected to exceed Celestica's cost of capital by the second year, or sooner
Expected to close by
4Q
mid fourth quarter
2021, subject to
2021
applicable regulatory approvals and customary closing conditions.
Bluetooth
Strategically Located Facilities Strengthen Presence in Asia to Serve Diverse U.S. and European Customer Base.
Manufacturing Facilities
Design & Engineering Centers
Global Headquarters
GPS
Wifi
CHINA
KUNSHAN
MANILA
PHILIPPINES
SINGAPORE
BATAM
INDONESIA
BANDUNG
Updating 2022 Guidance to Reflect PCI Transaction
Pre-PCI
Post-PCI
Pre-PCI
Post-PCI
2022 REVENUE
≥$6.0B
≥$6.3B
2022 ATS REVENUE
-
~$2.8B
MARGIN RANGE
3.75%-4.50%
4.0%-5.0%
2022 ATS MARGIN
5.0%-6.0%
~5.5%
DEBT / NON-IFRS
2022 EPS
≥10%
≥20%
ADJUSTED EBITDA2
1.4x
1.8x
GROWTH RATE
(anticipated pro-forma basis)
Note: Refer to Celestica's September 22, 2021 investor presentation for definitions of Celestica's non-IFRS financial measures and PCI's non-SFRS(I) financial measures, and related assumptions.
1Please refer to Celestica's September 21, 2021 press release and September 22, 2021 investor presentation for definitions of PCI's non-SRFS(I) adjusted EBITDA and non-SFRS(I) adjusted EBITDA margin and underlying assumptions. 2Please refer to Celestica's press release on September 21, 2021 for a calculation of the Pre-PCI and Post-PCIpro-forma gross debt / non-IFRS adjusted EBITDA ratio.
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Celestica Inc. published this content on 22 September 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 September 2021 14:01:06 UTC.
Celestica Inc. is engaged in designing, manufacturing, hardware platform and supply chain solutions. The Company operates in two segments: Advanced Technology Solutions (ATS) and Connectivity & Cloud Solutions (CCS). The ATS segment consists of its ATS end market and is comprised of its Aerospace & Defense (A&D), Industrial, HealthTech, and Capital Equipment businesses. Its Capital Equipment business is comprised of its semiconductor, display, and robotics equipment businesses. The CCS segment consists of its communications and enterprise end markets. The enterprise end market is comprised of Celesticaâs servers and storage businesses. It offers a range of product manufacturing and related supply chain services to customers in both of its segments, including design and development, new product introduction, engineering services, component sourcing, electronics manufacturing and assembly, testing, complex mechanical assembly, systems integration, precision machining and others.