SAN JOSE, Calif. Ultra Clean Holdings Inc., a supplier of subsystems for the semiconductor and flat-panel capital equipment industries, Thursday (June 29) said that it has acquired Sieger Engineering Inc. for cash and stock.
Ultra Clean (Menlo Park, Calif.) will expand its offerings with the move. Sieger is a supplier of critical subsystems to the semiconductor, flat panel and medical sectors.
By acquiring Sieger (South San Francisco, Calif.), Ultra Clean further expands its served markets and leverages its existing operations in China.
Under the terms, Ultra Clean will pay approximately $50 million to complete the transaction. The consideration will consist of $16 million in cash, approximately 2.47 million shares of Ultra Clean common stock, and the assumption of approximately $15 million of debt. The consideration is subject to a post-closing balance sheet adjustment.
Founded in 1981, Sieger generated approximately $86 million of revenue and $4 million of operating income in its last fiscal year ended December 31, 2005.
Clarence Granger, Ultra Clean's chief executive, was high on the deal. "Through this acquisition we add scale, as our combined revenue for 2005 would have been $234 million, a 59 percent increase over Ultra Clean's calendar year 2005 revenue of $147 million," he said in a statement. "We also expect to significantly increase our non-gas delivery subsystem revenue and subsystem integration capabilities, since there is no overlap among our product lines. This combination should enhance our competitive positions in our targeted markets."