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EXHIBIT 99.1
FOR IMMEDIATE RELEASE WEDNESDAY, DECEMBER 6, 2000
CELESTICA ANNOUNCES STRATEGIC ALLIANCE
WITH MOTOROLA
INCLUDES MULTI-YEAR SUPPLY AGREEMENT WORTH US$1 BILLION
AND ACQUISITION OF MOTOROLA MANUFACTURING ASSETS IN
DUBLIN, IRELAND AND MT. PLEASANT, IOWA.
TORONTO, Canada - Celestica Inc. (NYSE, TSE: CLS), a world leader in electronics
manufacturing services (EMS), announced today that it has entered into
agreements providing for a strategic EMS alliance with Motorola, Inc., of
Schaumburg, Illinois. As part of this alliance, Celestica has entered into a
supply agreement with Motorola that has a total estimated value of more than
US$1billion over a three year period.
Under the terms of the agreements Celestica will provide electronics
manufacturing services for a broad range of Motorola wireless telecommunications
products, such as cellular phones, messaging devices, two-way radio products and
related accessories.
Celestica will acquire Motorola's manufacturing assets in Dublin, Ireland and
Mt. Pleasant, Iowa at a price of approximately US$70 million subject to
post-closing adjustments. In addition to the transfer of assets, it is expected
that approximately 1,200 employees will join Celestica. Further details of the
deal, which is expected to close in the first quarter of 2001, were not
released.
The transaction aligns Celestica in a long term, strategic relationship with a
market leader in integrated communications and embedded electronic solutions and
diversifies Celestica's strong communications and internet infrastructure
customer-base, which includes over 38 companies in the areas of optical, data
networking, wireless and high-speed access.
"Celestica is very pleased to enter into this significant alliance relationship
with Motorola, a strategic telecommunications customer," said Eugene Polistuk,
president and CEO, Celestica. "This announcement further strengthens Celestica's
position as a world leader in the EMS industry, specifically in the rapidly
expanding wireless telecommunications sector."
"Motorola must remain nimble and stay ahead of the marketplace in order to
retain and grow its position as a technology leader," said Christopher B.
Galvin, Motorola's chairman and chief executive officer. "Leveraging the
expertise of a strategic partner and leader in the electronics manufacturing
services industry, like Celestica, enables Motorola to better anticipate its
customers' evolving needs and helps speed the time-to-market of Motorola's
products around the world."
more....
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ABOUT MOTOROLA
Motorola, Inc. is a global leader in providing integrated communications and
embedded electronic solutions. Sales in 1999 were $33.1 billion. For more
information, please visit the Motorola website at HTTP://WWW.MOTOROLA.COM
ABOUT CELESTICA
With more than 25,000 employees worldwide, Celestica operates 33 manufacturing
and design facilities in the United States, Canada, Mexico, the United Kingdom,
Ireland, Italy, the Czech Republic, Thailand, Hong Kong, China, Malaysia and
Brazil. Celestica provides a broad range of services including design,
prototyping, assembly, testing, product assurance, supply chain management,
worldwide distribution and after-sales service. Its customers include industry
leading original equipment manufacturers (OEMs), primarily in the information
technology and communications sectors.
For further information on Celestica, visit its website at
http://www.celestica.com. The company's security filings can also be accessed at
www.sedar.com.
STATEMENTS CONTAINED IN THIS PRESS RELEASE WHICH ARE NOT HISTORICAL FACTS ARE
FORWARD-LOOKING STATEMENTS WHICH INVOLVE RISK AND UNCERTAINTIES WHICH COULD
CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE EXPRESSED IN THE
FORWARD-LOOKING STATEMENTS. AMONG THE KEY FACTORS THAT COULD CAUSE SUCH
DIFFERENCES ARE: THE LEVEL OF OVERALL GROWTH IN THE ELECTRONICS MANUFACTURING
SERVICES (EMS) INDUSTRY; VARIABILITY OF OPERATING RESULTS AMONG PERIODS;
DEPENDENCE ON THE COMPUTER AND COMMUNICATIONS INDUSTRIES; DEPENDENCE ON A
LIMITED NUMBER OF CUSTOMERS; AND THE ABILITY TO MANAGE EXPANSION, CONSOLIDATION
AND THE INTEGRATION OF ACQUIRED BUSINESSES. THESE AND OTHER FACTORS ARE
DISCUSSED IN THE COMPANY'S VARIOUS PUBLIC FILINGS AT www.sedar.com.
AS OF ITS DATE, THIS PRESS RELEASE CONTAINS ANY MATERIAL INFORMATION ASSOCIATED
WITH THIS EVENT.
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For further information please contact:
Laurie Flanagan
Celestica
Corporate Communications
(416) 448-2200
[email protected]
