C&D Technologies Acquires Celestica Power Systems

September 26, 2004 by Jeff Shepard

C&D Technologies Inc. (Tucson, AZ) announced that it has signed a definitive agreement with Celestica to acquire its Celestica Power Systems (Toronto, Ontario, Canada) division in an all-cash transaction, the terms of which were not disclosed. Celestica Power Systems develops dc-dc and ac-dc power supplies, which are sold on a direct basis to large computing and communications original equipment manufacturers (OEMs).

The acquisition of Celestica Power Systems will provide C&D with a broader product offering, access to an expanded group of OEM customers, and additional low-cost engineering resources in mainland China. In addition, the acquisition of expands C&D's Power Electronics Division, which is expected to generate estimated annual revenues in excess of $200 million upon closing of this transaction.

C&D Technologies President and Chief Executive Officer Wade Roberts, Jr. stated, "We are pleased to have identified another well-fitting acquisition, the third this year. The combination of Celestica's Power division, Datel, Celab and C&D Power Electronics is expected to establish the division as a worldwide leader with a broad product offering, diverse channels to market and one of the most capable engineering teams in the industry. We look forward to welcoming the talented employees, loyal customers and experienced management team from Celestica to the C&D family. Additionally, a supply agreement entered into with Celestica concurrent with this transaction should ensure a reliable supply of high-quality merchandise for power systems customers."

The transaction is subject to customary closing conditions and is expected to close within the next 30 days. When completed, C&D Technologies expects the transaction to be immediately accretive to earnings. C&D Technologies' bank group, led by Bank of America, has expanded the company's revolving line of credit to $200 million to fund the acquisition.