ATS Automation to acquire ATW automation businesses in US, Europe
A subsidiary of ATS Automation Tooling Systems Inc. has entered into a definitive agreement to acquire the majority of Assembly & Test Worldwide, Inc.'s U.S.-based and German automation and test systems businesses (ATW).
A subsidiary of ATS Automation Tooling Systems Inc. has entered into a definitive agreement to acquire the majority of Assembly & Test Worldwide, Inc.’s U.S.-based and German automation and test systems businesses (ATW).
The final purchase price is expected to be approximately CDN$18.6 million.
Under the agreement, Cambridge, Ont.-based ATS subsidiaries will acquire operations in Dayton, Ohio; Saginaw and Livonia, Mich.; and Neuwied, Germany.
According to ATS, the operations have capabilities in a number of specialized automation and test system applications and will complement and add to existing ATS capabilities. Together, the operations derive approximately two-thirds of their revenues from the automotive market, with the balance generated primarily in Life Sciences and Energy.
“The acquisition of the ATW businesses will add to our competency base and provide new relationships with a number of attractive automotive customers,” said Anthony Caputo, ATS CEO. “As with the formation of our Life Sciences group earlier this year, this acquisition provides the critical mass to launch a group focused on transportation. We expect to launch additional groups as we grow and achieve scale in other customer markets.”
The operations to be acquired have a combined workforce of approximately 300, including 60 in Germany. In 2009, the operations reported combined revenues of approximately US$65 million.