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Celestica to purchase Graycliff Partners-owned Impakt for US$329M

Celestica Inc., a capital equipment manufacturer, agreed to buy Impakt Holdings LLC in a deal worth US$329 million, subject to certain adjustments.

Impakt, which is owned by middle-market private equity firm Graycliff Partners LP, is a vertically integrated contract manufacturer providing solutions for original equipment manufacturers in the semiconductor and organic LED display industries.

The transaction will enable Celestica to broaden its in-region and vertical offerings across key U.S. and South Korean markets. The deal, likely to close during the fourth quarter, is expected to be accretive to consolidated non-IFRS operating margin and overall against the spread margin upon closing.

Celestica will finance the sale with a combination of borrowings under its current credit facility. The deal is contingent on regulatory approvals, among other customary closing conditions.

Additionally, Celestica expects to receive C$122 million in proceeds from the sale of a real property in Toronto in a deal expected to close in the fourth quarter of 2018 or the first quarter of 2019.

Moelis & Co. LLC was the exclusive financial adviser to Celestica, while Blake Cassels & Graydon and Arnold & Porter were its legal counsel. Stifel and Lincoln International were the financial advisers to Impakt.