ATS Automation acquires SP Industries
SP designs and manufactures biopharma processing equipment, life sciences equipment, and lab apparatus products.
Cambridge, Ont.-based ATS Automation Tooling Systems Inc. is acquiring SP Industries Inc., a designer and manufacturer of biopharma processing equipment, life sciences equipment, and lab apparatus products for US$445 million.
“SP greatly expands our capabilities and offerings through the addition of its aseptic and non-aseptic lyophilization portfolio and its fill-finish solutions and enhances our position in the pharmaceutical drug development and production end-markets,” said Andrew Hider, CEO of ATS. “SP participates in highly attractive segments where growth is driven by a robust pharma drug pipeline, rising usage of biologics and increasing lyophilization of products. Notably, the combination of ATS and SP will allow us to better support the needs of our customers throughout the lifecycle of pharmaceutical development and production, as well as in diagnostics, broader life sciences and applied sciences applications. With its proven track record and talented team, SP will be a strong contributor to the ATS family offering compelling sales synergy potential with our life sciences businesses including Comecer.”
Warminster, Pa.-based SP offers a portfolio of research and commercial lyophilizers, aseptic fill-finish equipment and systems, life sciences equipment, and recurring revenues through its labware and glassware business. In the trailing 12-months ended Sept. 30, 2021, SP generated revenues of US$179 million, ATS officials said, with approximately 70 per cent of its revenues are derived from customers in North America, 14 per cent from Europe, and the remainder from other regions.
SP employs approximately 700 employees spread across its nine manufacturing facilities and locations in the U.S., U.K., and Spain.
SP will continue to be led by its CEO, Brian Larkin.
The transaction is expected to close in the fourth calendar quarter of 2021.