1400 Union Meeting Road
Blue Bell, PA 19422
Phone: 215-619-2700
Shareholder Contacts:
Stephen E. Markert, Jr. of C&D: 215-619-7835
Joseph Crivelli of Gregory FCA, for C&D: 610-642-8253
C&D TECHNOLOGIES ANNOUNCES ACQUISITION OF
CELESTICA POWER SYSTEMS
Blue Bell, PA -- September 24, 2004 -- C&D Technologies (NYSE: CHP)
today announced it signed a definitive agreement with Celestica, a world leader
in electronics manufacturing services (EMS), to acquire its Power Systems
division in an all-cash transaction, the terms of which were not disclosed.
Celestica Power Systems, a division of Celestica Inc. (NYSE: CLS) is a
Toronto, Ontario-based manufacturer with sales of approximately $94 million for
the twelve months ending June 30, 2004. Celestica Power Systems develops DC/DC
and AC/DC power supplies which are sold on a direct basis to large computing and
communications OEMs. The acquisition of Celestica Power Systems will provide C&D
with a broader product offering, access to an expanded group of Original
Equipment Manufacturer (OEM) customers, and additional low-cost engineering
resources in mainland China. In addition, Celestica's Power Systems division has
long been known as a technology leader, and its history of innovation will
position C&D on the forefront of technology development and capability within
the power electronics space.
Previously this year, C&D announced the acquisition of Datel, Inc. and
Celab Limited, both of which will be integrated with C&D's Power Electronics
Division, a provider of power conversion products and electronic components to
technology companies worldwide. The acquisition of Celestica Power Systems
further 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.
Wade H. Roberts, Jr., president and chief executive officer of C&D
Technologies, 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.
C&D Technologies plans to hold a conference call after the closing.
Details will be provided at a later date.
This press release may contain forward-looking statements (within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934) which are based on management's current
expectations and are subject to uncertainties and changes in circumstances.
Words and expressions reflecting something other than historical fact are
intended to identify forward-looking statements, but are not the exclusive means
of identifying such statements. Factors that appear with the forward-looking
statements, or in the company's Securities and Exchange Commission filings
(including without limitation the company's annual report on Form 10-K for the
fiscal year ended January 31, 2004, or the quarterly reports filed on Form 10-Q
thereafter), could cause the company's actual results to differ materially from
those expressed in any forward-looking statements made herein.
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