ATS buys micro-injection molder (February 07, 2003)
The acquisition of Micro Precision Plastics (MPP) is a complement to ATS Automation Tooling Systems Inc.'s existing...
February 7, 2003 by Canadian Plastics
The acquisition of Micro Precision Plastics (MPP) is a complement to ATS Automation Tooling Systems Inc.’s existing capabilities as a sub-assembly supplier. The transaction was completed for $8.6 million including assumed debt.
MPP is a fast growing, profitable, privately-held company with annual sales of approximately $10 million. Based in Bowmanville, ON, it supplies tiny injection molded components and tooling to a diverse clientele in the automotive, electronic and consumer products areas.
“ATS already has a strong and profitable plastics division [Precision Components Group] and the acquisition of MPP nicely complements our existing capabilities,” said Bruce Seeley, ATS vice-president of Precision Components.
“With this acquisition, we add several new and attractive customers, MPP’s unique micro-molding capabilities and demonstrated expertise in high tolerance components including small gears. Financially, we purchased a small but growing company at a reasonable price — and we gained some unique tooling concepts we can transfer to enhance our lead times and customer service.”
Founded in 1994 by Gary and Chris Lane, Micro Precision Plastics employs 84 people at a 21,500 square foot, ISO 9002 manufacturing facility. Both Gary and Chris will remain with MPP.
The company produces approximately 1,500 products using 42 small tonnage (7-85 tons) molding machines.
“This is a growing business that has relied strictly on word of mouth from satisfied customers to expand and that expansion has been solid,” said Seeley. “By joining a company with the scope and industry-leading presence of ATS, and putting MPP’s capabilities in the hands of ATS’s dedicated sales force, we can fuel overall growth.”
ATS is based in Cambridge, ON. The company designs and produces turn-key automated manufacturing and test systems, and makes precision components and sub-assemblies using its own custom-built manufacturing systems, process knowledge and automation technology. ATS employs approximately 3,200 people at 28 facilities in Canada, the United States, Europe and Asia-Pacific.