Ultra Clean To Buy Dynamic Manufacturing

(RTTNews) - Ultra Clean Holdings, Inc.(UCTT), Monday said it has acquired Dynamic Manufacturing Solutions, LLC, a semiconductor weldment and solutions provider.

Ultra Clean will pay $30 million in cash for DMS and additional cash payments up to $12.5 million to the former owners of DMS if the combined weldment business achieves certain gross profit and gross margin targets for the twelve months ending June 26, 2020.

In 2018, DMS generated revenue of $48.4 million, net income of $2.1 million and Adjusted EBITDA of $5.6 million.

"The acquisition of DMS further enhances UCT's strong position in the gas delivery market," said Jim Scholhamer, CEO. "DMS has a history of providing top quality fabrication of ultra-high purity weldments, which is highly complementary to UCT's existing offerings and operations. This transaction should allow us to leverage economies of scale, strengthen our manufacturing capabilities and enhance our competitive position. We expect the acquisition to improve UCT's profitability and be accretive to earnings."