Celestica Inc. has completed the acquistion of International Manufacturing Services Inc. (IMS) in a $177 million stock swap.
IMS, a contract electronics manufacturer that serves mainly Asia, will now operate as Celestica Asia as a wholly owned subsidiary of the Toronto-based company.
Celestica, the third largest CEM behind SCI Systems Inc. and Solectron Corp., will record a non-cash write-off of nearly $12 milion as a result of the merger in its fourth quarter ending today.
"IMS provides Celestica with a strategic presence in Asia and significantly strengthens its leadership position within the EMS [electronic manufacturing services] industry,'' said Eugene Polistuk, president and chief executive of Celestica, based in Toronto, in a statement.
Celestica now has 200,000-sq.-ft. plants in Tungsukla, Thailand; and Dongguan, China. It also gained IMS' headquarter operations in San Jose, a logistics center in Hong Kong, and a 100,000-sq.-ft. manufacturing plant currently under construction in Monterrey, Mexico.
In Celestica's nine-months ended Sept. 30, the company posted a 76% rise in revenue, which reached $2.3 billion from $1.3 billion.