Celestica International Holdings Inc, the Canadian electronics assembly firm today added Madge Networks’ Token Ring and ATM production plant in Dublin to its string of recent acquisitions. Initially Celestica will build products solely for Madge, but the Onex subsidiary and former IBM company plans to expand facilities and begin manufacturing for other companies. Madge hopes the outsourcing deal with Celestica will mean lower manufacturing costs, resulting from increased economies of scale. The purchase for an undisclosed fee comes on the tail of Celestica’s buy-out last month of Lucent Technologies Inc’s manufacturing facilities in Monterrey, Mexico. Celestica, which has an aggressive acquisition policy, last year acquired Hewlett-Packard Co’s system assembly plant in New Hampshire, and its printed circuit board operation in Fort Collins, Colorado, as well as ICL Plc’s contract manufacturing business. Ontario-based Celestica was sold by the Canadian arm of IBM Corp in 1996 to Onex Corp (CI No 3,011).
