Celestica Inc. to Purchase IBM Circuit Board Operations

On January 12, 2000, Celestica Inc. announced that it has entered into agreements with IBM Corp. to acquire IBM’s printed circuit board assembly and test services operations in Rochester, Minnesota, as well as its printed circuit board and system assembly services operations in Vimercate and Santa Palomba, Italy, for approximately US$500 million. Concurrent with entering into the acquisition agreements, Celestica and IBM negotiated strategic supply agreements, yielding annualized revenues of approximately US$1.5 billion to Celestica, under which Celestica will provide a complete range of electronics manufacturing services to IBM. Berl Nadler (corporate), Richard F. D. Corley (information technology), Sarbjit Basra (corporate) and Gray Taylor (environmental) of Davies, Ward & Beck acted for Celestica in connection with the transaction. Gregory C. Bomberger, IBM’s Associate General Counsel, led the IBM legal team.