Business
Powerwave announces strategic relationship with Celestica
Powerwave announces strategic relationship with Celestica.
About this update from Celestica Inc.
[{"type":"text","content":"\n\n\n\n\nDeal includes sale of Philippine manufacturing operation to Celestica \n\nPowerwave continues to leverage EMS model for operational excellence\n\nSANTA ANA, CA, and TORONTO, ON, Feb. 9 /CNW/ - Powerwave Technologies,\nInc. (NASDAQ:PWAV), a global supplier of wireless infrastructure solutions,\nand Celestica Inc. (NYSE:CLS, TSX:CLS/SV), a world leader in electronics\nmanufacturing services (EMS), today announced that they have entered into an\nagreement whereby Celestica will acquire Powerwave's Philippines manufacturing\noperations.\nUnder the terms of the agreement, Celestica and Powerwave will enter into\na multi-year supply agreement that will see Celestica become Powerwave's\npreferred outsourcing partner. Celestica will pay Powerwave approximately \n$19 million in cash to acquire the manufacturing operation, including\nbuildings and all inventory and equipment at the site. Additionally, the\nfacility's entire highly skilled workforce - approximately 600 workers - will\nbecome part of Celestica. The transaction is subject to certain closing\nadjustments and conditions and is expected to close in March 2006. Celestica\nhas supported Powerwave as a strategic EMS provider since 2002.\nThe site, located in Cabuyao Laguna, close to Manila, was acquired by\nPowerwave as part of its acquisition of certain assets and liabilities of\nREMEC's Wireless Systems business in September 2005. The facility, which\nprimarily produces power amplifiers for use in wireless infrastructure\nnetworks, will continue to manufacture products for Powerwave.\nThe sale of the Philippines manufacturing operation and the expanded\nrelationship with Celestica are part of Powerwave's overall strategy to\noptimize manufacturing operations to support its global customer base while\nreducing operating expenses. For Celestica, the deal enhances the company's\nmanufacturing profile in the Asia-Pacific region, adding new capabilities and\ncapacity.\n\"With a highly skilled workforce and low cost structure, the Philippines\nremain a very strategic manufacturing locale for Powerwave,\" said Ronald J.\nBuschur, President and Chief Executive Officer of Powerwave Technologies.\n\"This arrangement allows Powerwave to leverage the electronic manufacturing\nservices model to maintain operational flexibility and reduce costs, yet still\nhave access to technical t...