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UCTT to acquire Sieger Engineering

Posted: 04 Jul 2006 ?? ?Print Version ?Bookmark and Share

Keywords:acquisition? Ultra Clean Holdings? critical subsystem? Sieger Engineering?

Ultra Clean Holdings Inc. (UCTT), a developer and supplier of critical subsystems for the semiconductor and flat panel capital equipment industries, reported that it is acquiring Sieger Engineering Inc., a product-manufacturing solutions provider. By acquiring Sieger, UCTT expands its served markets and leverages its existing operations in China while adding outsourced manufacturing capabilities.

UCTT will pay approximately $50 million to complete the transaction. The consideration will consist of $16 million in cash, approximately 2.47 million shares of UCTT common stock, and the assumption of approximately $15 million of debt. The consideration is subject to a post-closing balance sheet adjustment.

Founded in 1981 and based in South San Francisco, Sieger generated approximately $86 million of revenue and $4 million of operating income in its last fiscal year ended December 31, 2005.

"We expect the transaction to be accretive to earnings for the balance of 2006 and for all of 2007," said Clarence Granger, UCTT CEO. According to Granger, the companies' combined revenue for 2005 would have been $234 million, a 59 percent increase over UCTT's calendar year 2005 revenue of $147 million. Granger expects to increase UCTT's non-gas delivery subsystem revenue and subsystem integration capabilities, since there is no overlap among its product lines.

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