LOS ANGELES, Sept. 21, 2021 /PRNewswire/ -- Platinum
Equity announced today the signing of a definitive agreement to
sell PCI Limited ("PCI"), an electronics manufacturing services
provider based in Singapore, to
Celestica Inc. (TSX: CLS) (NYSE: CLS), headquartered in
Toronto, a leader in design,
manufacturing and supply chain solutions for the world's most
innovative companies, for $306
million in cash. The sale is expected to close in mid-fourth
quarter of 2021, subject to regulatory approval and customary
closing conditions.
PCI is a fully integrated design, engineering and manufacturing
solutions provider with six manufacturing and design facilities
across Asia. The business serves
diverse end-markets, including the automotive, industrial
equipment, commercial, consumer/lifestyle, and medical
segments.
Platinum Equity, a Los
Angeles-based global private equity firm focused on
acquiring businesses that can benefit from the firm's operational
expertise, acquired PCI in April 2019
in a public-to-private transaction. The PCI investment was led by
Platinum Equity's Singapore
office.
"We have committed substantial financial, M&A and
operational resources to our investment strategy in Asia and PCI's success is yet another example
of how we are creating value in the region," said Jacob Kotzubei, the partner in Platinum Equity's
Los Angeles headquarters who
oversees the firm's Singapore-based team. "We have deep experience
transacting in Asia and a
dedicated team on the ground that has real momentum."
The PCI sale will mark Platinum Equity's second divestiture in
Singapore in the past year, having
sold Singapore-based Compart
Systems to Shanghai Wayne Enterprises in December 2020.
"By partnering with PCI's leadership team, we accelerated the
company's transformation into a technology-driven enterprise that
is integral to its customers' product development and supply chain
ecosystems," said Soo Jin Goh,
Managing Director at Platinum Equity and head of the firm's
Singapore-based investment
team. "We invested in people and systems, transformed the
company's sales organization and go-to-market approach to
accelerate growth, and initiated 'smart factory' automation
projects to increase efficiencies and create operating leverage as
the company continues to scale."
Since Platinum Equity's acquisition of PCI, the company grew
annual revenue by more than 40% and substantially improved its
profitability. PCI also doubled its pace of customer acquisition
during that time, with an emphasis on meeting the increased demand
for connected products and devices. This resulted in a substantial
contract win in June 2021 to
manufacture a wearable contact tracing device as part of the
Singapore government's efforts to
stop the spread of Covid-19.
"Under Platinum Equity's ownership, we have accelerated our
transformation on many fronts, investing in machinery and system
upgrades, adding new talent to our organization, and setting the
stage for a new period of growth and expansion," said PCI CEO EL
Teo. "Celestica is an industry leader, and the ideal home for our
business going forward. We are excited to leverage Celestica's
global footprint and significant resources to rapidly expand our
business and introduce our solutions to more customers around the
world."
"The acquisition of PCI will enable us to build on our
transformation initiatives and expand our portfolio with innovative
capabilities in key growth markets," said Rob Mionis, President and CEO, Celestica. "PCI
has built one of the premier teams in the industry and a
differentiated set of capabilities that make them a true
value-added partner to their customers. By combining our portfolios
and innovation platforms, we will be able to capitalize on emerging
industry trends and strengthen our offerings to customers in order
to generate significant value for all Celestica shareholders."
Lincoln International is serving as financial advisor to
Platinum Equity on the sale of PCI. BDA Partners is providing
advisory services to Platinum Equity in Asia. Duane Morris is
serving as Platinum Equity's legal advisor on the transaction.
About Platinum Equity
Founded in 1995 by Tom Gores, Platinum Equity is a global
investment firm with more than $25
billion of assets under management and a portfolio of
approximately 50 operating companies that serve customers around
the world. The firm is currently investing from Platinum
Equity Capital Partners V, a $10
billion global buyout fund, and Platinum Equity Small
Cap Fund, a $1.5 billion buyout fund
focused on investment opportunities in the lower middle market.
Platinum Equity specializes in mergers, acquisitions and operations
– a trademarked strategy it calls M&A&O® –
acquiring and operating companies in a broad range of business
markets, including manufacturing, distribution, transportation and
logistics, equipment rental, metals services, media and
entertainment, technology, telecommunications and other industries.
Over the past 25 years Platinum Equity has completed more than 300
acquisitions.
Cautionary Note Regarding Forward-Looking
Statements
To the extent that this press release contains
forward-looking statements within the meaning of Section 27A of the
U.S. Securities Act of 1933, as amended, and Section 21E of the
U.S. Securities Exchange Act of 1934, as amended, and
forward-looking information within the meaning of Canadian
securities laws, please refer to Celestica's press release from
today at "Cautionary Note Regarding Forward-Looking Statements" for
identification and discussion of the material underlying
assumptions and material risks associated with, as well as further
information concerning, such forward-looking statements and
information. Such press release may be accessed under
Celestica's profile at sec.gov and sedar.com or on Celestica's web
site at celestica.com."
Contacts:
Dan Whelan, Platinum Equity
(310) 282-9202
dwhelan@platinumequity.com
View original content to download
multimedia:https://www.prnewswire.com/news-releases/platinum-equity-announces-sale-of-singapore-based-electronics-manufacturing-services-provider-pci-to-celestica-301382165.html
SOURCE Platinum Equity