Contract electronics manufacturer Celestica Inc. has signed agreements to acquire manufacturing operations in Massachusetts and the Czech Republic.
Toronto-based Celestica has agreed in principal to acquire Hewlett-Packard Co.'s printed-circuit-board assembly operation in Andover, Mass. The 26,000-sq.-ft. plant has been the center of HP's Medical Products Group. Thus, Celestica will be expanding its manufacturing relationship with HP to include medical products, the CEM's first foray into medical instrumentation. All employees of the Andover Surface Mount Center will be offered jobs with Celestica.
The CEM has also agreed to lease the Andover plant, and to assume ownership of the operation's capital equipment and physical assets.
Financial terms of the agreement, which is expected to be closed within the next few months, were not disclosed.
Celestica has also entered into an agreement with Gossen-Metrawatt GmbH, a Nuremberg, Germany-based supplier of test and measurement equipment, to acquire the company's plant in Rajecko, the Czech Republic.
Under terms of the agreement, Celestica will provide manufacturing services for Gossen-Metrawatt, a subsidiary of German conglomerate the Rochling Group. All employees of the Rajecko plant have been offered jobs with Celestica.
The 50,000-sq.-ft. facility operates two SMT lines, and Celestica intends to expand the operation to provide manufacturing services for additional customers.
The acquisition includes the building, land, equipment, and physical assets. Celestica also has rights to acquire additional land adjoining the plant.
"This acquisition delivers on Celestica's previously announced strategy of expanding into key geographies, such as Central Europe," said Eugene Polistuk, the CEM's president and chief executive.