the genus of fungus moths see stenoptinea . for the song made by crystal castles see celestica song . celestica inc. type public traded as tsx cls nyse cls industry electronics founded 1994 headquarters toronto ontario canada key people rob mionis ceo products communications enterprise and cloud solutions industrial aerospace and defense renewable energy healthtech semiconductor capital equipment consumer revenue 5.6 billion usd 2015 number of employees 25 000 2016 1 2 parent onex corporation website www.celestica.com celestica inc. is a canadian multinational electronics manufacturing services ems company headquartered in toronto ontario . celestica s global manufacturing network comprises more than 20 locations in 11 countries in the americas europe and asia delivering end to end product lifecycle solutions . in addition to manufacturing the company s global services include design and engineering systems assembly fulfillment after market services and supply chain services . contents 1 history 1.1 origins 1.2 spin off 1.3 onex purchase 1.4 going public 1.5 crash 2 operations 3 controversy 4 references 4.1 notes 4.2 bibliography 5 external links history edit origins edit celestica s toronto headquarters were originally the location of ibm s toronto sales and support offices which also supported a small manufacturing unit which built metal boxes for their mainframe computers and associated support systems . eugene polistuk a graduate of the university of toronto in 1969 3 joined ibm and rose through the ranks before taking over the toronto manufacturing division in 1986 . 4 as the world turned from mainframes to microcomputers polistuk s operations were forced to reduce headcount in 1986 and 1988 . in response polistuk started to diversify the plant s product lines building circuit boards memory products and power supplies that could be used in a wide variety of ibm products . the 300 million investment was successful and by 1993 most ibm divisions were buying some of the systems produced in toronto . the factory site expanded several times . 4 spin off edit as ibm transitioned from a hardware company to a software and services company the future of the manufacturing unit was in doubt despite its financial successes . in 1992 polistuk suggested that the entire division be spun off into a separate company that would offer their services to anyone . his arguments slowly won over ibm s management and in january 1994 celestica was formed as a wholly owned subsidiary of ibm canada . 4 ibm s other divisions at the location moved to new buildings in markham . polistuk immediately invoked changes in order to break out of what he saw as a moribund management structure left over from the ibm days . an early move was to institute a 5 % pay cut in exchange for a profit sharing program that could reap up to 30 % of base pay . 4 another move was to make the same share offerings to everyone in the company breaking with conventional options plans that offer the best prices to executives . 3 by the end of celestica s first year of operations they had signed up 40 new customers . non ibm customers had originally accounted for only 10 % of their output but was now standing at 30 % and growing . this process was helped as major players in the computer industry started the process of outsourcing their own production systems . however polistuk felt that the only way to truly reach their potential was to have someone buy the company from ibm . 4 onex purchase edit in may 1994 polistuk met with anthony melman of onex corporation about a potential buy out . ibm was not interested in selling however as the division was one of the most profitable sections of their canadian operations . however after continued agitation in 1996 ibm canada agreed to sell the business and hired nesbitt burns to find potential buyers . after a selection process five were allowed to review celestica s books . onex s bid of 750 million for 69 % of the company won the final selection in october 1996 . 4 this triggered rapid expansion at celestica . in 1997 they bought uk based design to distribution the manufacturing division of international computers limited which itself was part owned by fujitsu . later that year they purchased major portions of hewlett packard s manufacturing lines including their pc board plant in fort collins co their system assembly plant in new hampshire and their system design shop in chelmsford ma . in october they bought ascent power technology who had power supply manufacturing in canada the us and uk . 4 by the end of the year only 25 % of its business came from ibm . going public edit in july 1998 onex took the company public raising 414 million the largest ipo in the ems field . this infusion of capital sparked another round of growth and during the year the company bought international manufacturing services in asia and added factories in northern california mexico and ireland . by the end of the year the company was turning over 3.2 billion annually . 4 by 1998 the global ems market was estimated to be around 60 billion with projections that it would be over 150 billion 2003 . polistuk considered this to be conservative noting by 2001 to be among the largest contract manufacturers in this business you ll need 10 billion in annual revenues . just five years ago nobody would have thought there would be a 10 billion ems but soon that is going to be the minimum to be a tier 1 company . 5 several additional stock offerings were made from the original onex pool ; 251 million in march 1999 and 225 million in may . a second public offering in november added 488 million . the money was used to fund more purchases adding five factories in the czech republic two in italy and another each in ireland the us brazil and malaysia . by the end of the year they had a turnover of 5.3 billion making them the third largest ems in the world . on 6 june 2001 polistuk was appointed chairman of the board . 6 crash edit the dot com crash and telecoms crash in 2001 led to a worldwide drying up of ems work . in april 2001 the company announced it was laying off 3 000 people about 10 % of its workforce . 7 the company later announced that polistuk would be taking a 1 3 pay cut as part of a wider series of compensation rollbacks . 8 several rounds of lowered guidance followed in spite of new supplier contracts and continued acquisitions . losses mounted and on 29 january 2004 the company announced that polistuk would be retiring . in april stephen delaney took over the ceo position . 9 a second round of layoffs followed in 2005 along with the sale of several divisions . operations stabilized along with the rest of the market through 2008 . operations edit celestica s global manufacturing network comprises over 20 locations in the americas europe and asia . controversy edit on friday 12 january 2007 a shareholder class action suit was filed in new york against celestica and members of the company s executive team . the complaint alleges that the company made materially false and misleading statements about the business and failed to disclose adverse facts namely i that the company was experiencing declining demand in its mexican operations and that the division was carrying significant amounts of unneeded inventory which would have to be written off ; ii that the company was experiencing declining demand in its information technology it and communications market segments as its larger customers scaled back purchases ; and that the stock dropped when this information later became public . this class action suit was dismissed in 2010 . 10 references edit notes edit http www.celestica.com aboutus aboutus.aspx company profile for celestica inc cls . retrieved 2008 10 07 . a b einstein a b c d e f g h history mcgarvey celestica inc. ceo eugene polistuk appointed chairman 6 feb 2001 celestica inc. raises earnings outlook ; announces job cuts 18 april 2001 showwei chu celestica ceo takes one third pay cut globe & mail 2001 polistuk leaves celestica cbc news 28 january 2004 1 celestica inc. class action litigation . settled and or concluded case bibliography edit history international directory of company histories celestica inc. the gale group david einstein top tech execs eugene polistuk forbes 12 december 2000 robert mcgarvey outsourcers rise again upside february 2000 external links edit companies portal company website company security filings company security filings ems research on celestica by isuppli v t e major information technology companies largest it companies largest internet companies largest software companies semiconductor sales leaders by year consulting and outsourcing accenture atos booz allen hamilton bt global services caci capgemini cgi group cognizant computer sciences corporation deloitte digital china fujitsu hcl technologies hitachi consulting hewlett packard enterprise services ibm global services indra sistemas infosys kpmg leidos nec ntt data orange business services t systems tata consultancy services tech mahindra unisys wipro imaging canon inc. hp inc. eastman kodak fujifilm konica minolta kyocera lexmark nikon olympus corporation panasonic ricoh samsung electronics seiko epson sharp sony toshiba xerox information storage adata dell technologies dell emc fujitsu hitachi data systems hewlett packard enterprise ibm kingston technology lenovoemc netapp oracle corporation plextor samsung electronics sandisk seagate technology silicon power sony toshiba transcend information western digital internet aol baidu facebook google iac interactivecorp microsoft naver netease netflix tencent twitter yahoo yandex cloud computing amazon web services google ibm microsoft oracle corporation rackspace salesforce.com e commerce only alibaba group amazon.com ebay groupon jd.com rakuten mainframes fujitsu ibm mobile devices acer inc. amazon.com apple asus bbk electronics oppo vivo blackberry limited hisense htc huawei i mobile karbonn mobiles lava mobiles lenovo motorola mobility lg electronics meizu micromax mobile microsoft nokia panasonic samsung sony tcl corporation true xiaomi zte networking equipment avaya cisco systems ericsson fujitsu hewlett packard enterprise huawei juniper networks motorola solutions nec nokia qualcomm zte oems celestica compal electronics flextronics foxconn jabil circuit pegatron quanta sanmina corporation tpv technology wistron corporation personal computers and servers acer inc. apple inc. asus dell fujitsu hp inc. lenovo lg electronics nec panasonic samsung electronics toshiba servers only cisco systems hewlett packard enterprise inspur oracle corporation point of sale casio ncr panasonic samsung electronics seiko epson sharp star micronics toshiba wincor nixdorf semiconductors advanced micro devices broadcom freescale semiconductor fujitsu infineon technologies integrated micro electronics inc. intel lg electronics marvell technology group mediatek micron technology nvidia nxp semiconductors on semiconductor panasonic qualcomm renesas electronics samsung electronics sk hynix sony stmicroelectronics texas instruments toshiba via technologies foundries globalfoundries tsmc united microelectronics corporation smic equipment lam research software adobe systems apple inc. ca technologies google hewlett packard enterprise ibm intuit microsoft oracle corporation sap se symantec vmware telecommunications services bharti airtel am rica m vil at & t bell canada bharat sanchar nigam limited bt group centurylink china mobile china telecom china unicom comcast deutsche telekom hutchison asia telecommunications idea cellular kddi kpn kt corporation mahanagar telephone nigam mtn mts nippon telegraph and telephone ntt docomo oi orange s.a. reliance communications sk telecom softbank mobile sprint corporation tata teleservices telecom italia telef nica telenor true verizon communications vimpelcom vivendi vodafone methodology fy2014 15 applicable revenues of over group 1 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