ATS Automation Acquires ATW
December 29, 2010—
ATS Automation Tooling Systems Inc. recently announced that one of its subsidiaries has entered into a definitive agreement to acquire the majority of Assembly & Test Worldwide (ATW), Inc.'s U.S.-based and German automation and test systems businesses. Under the agreement, ATS subsidiaries will acquire operations in Dayton, Ohio, Saginaw, Michigan, Livonia, Michigan and Neuwied, Germany. The operations have capability in a number of specialized automation and test system applications and will complement and add to existing ATS Automation Systems Group (ASG) 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."
ATS expects to complete the acquisition in the next several weeks, subject to several closing conditions, including customary consents and approvals and introductory visits with targeted customers. The acquisition is expected to be accretive to EBIT and cash flow. The acquisition of the ATW businesses aligns with ATS's stated strategy of expanding its position in the global automation market and enhancing growth opportunities.