Celestica Inc. (TSX:CLS) entered into a definitive agreement to acquire PCI Private Limited from Platinum Equity, LLC for approximately $330 million on September 21, 2021. The purchase price for PCI is $314.7, net of $11.4 of cash acquired. The purchase price is subject to working capital adjustment. Celestica intends to finance the transaction with a combination of cash on hand and borrowings under its credit facility. Celestica expects to finance a portion of the purchase price of PCI with the addition of a new term loan of approximately $210 million under its current credit facility. If such new term loan is unavailable at acquisition closing, Celestica intends to use availability under its existing revolver to finance this portion of the transaction. Although Celestica believes that such term loan will be provided on acceptable terms. As of October 25, 2021, Celestica will finance the acquisition with a combination of cash on hand and borrowings of up to $220 million under its current credit facility. Celestica intends to use borrowings under its revolver facility of $429 million to finance this portion of the acquisition at closing. However, Celestica is currently pursuing the addition of a new term loan under its credit facility, which if obtained, will be used to repay the amounts borrowed under the revolver for the acquisition.

PCI is expected to generate approximately $325 million of annual revenue in 2021 with low double-digit adjusted EBITDA margins and strong cash flows. The transaction is subject to receipt of an applicable regulatory approval and satisfaction of other customary closing conditions. As on September 23, 2021, this acquisition has been notified to the Competition and Consumer Protection. On October 11, 2021, the transaction has been cleared by the Competition and Consumer Protection Commission. The transaction is expected to close in mid-fourth quarter of 2021 and is expected to be accretive to earnings per share. Lincoln International LLC and Paul DiGiacom and Simon Kavanagh of BDA Partners (HK) Ltd, Anindita Das and Michael Lim of BDA Partners Pte Ltd acted as financial advisors to Platinum Equity. Leon Yee, Ramiro Rodriguez, Suilyn Yip, Jamie A. Benson, Zabrina Hamid, Gerard A. Hekker, Aaron Kok, Sean La'Brooy, Krishna Ramachandra, Sarbjit Singh Chopra, Daniel Soo, Priyank Srivastava, Kim Sung-Hee, Ung Gim Sei and Lan Yu of Duane Morris & Selvam LLP acted as legal advisors to Platinum Equity. Ashley Ballard, Will Smith of White & Case LLP, Vivian Tsoi of White & Case LLP, Shanghai Office and Peiwen Chen of White & Case LLP - Hong Kong acted as legal advisors to Celestica.

Celestica Inc. (TSX:CLS) completed the acquisition of PCI Private Limited from Platinum Equity, LLC on November 1, 2021. Transaction was financed by $220 million revolving credit.