ATS Automation Signs Definitive Agreement to Sell Precision Components Group
CAMBRIDGE, ON, Sept. 12 /CNW/ - ATS Automation Tooling Systems Inc. today announced it has finalized a definitive agreement to sell the key operating assets and liabilities of Precision Components Group ("PCG") to a group led by current PCG management. The Company expects to complete the sale in the third quarter of this fiscal year, upon finalization of certain regulatory and legal matters.
"PCG is not profitable and not strategic to the Company," said Anthony Caputo, Chief Executive Officer. "Its divestiture to PCG management allows us to focus on other operations. We believe this transaction is in the best interest of all our employees."
The agreement includes equipment, current assets (excluding cash), trade accounts payable and certain other assets and liabilities. The Company does not anticipate further impairment charges on the transaction, pending finalization of closing costs. PCG employs approximately 300 people at three facilities, two of which are located in Canada and one in China.
ATS Automation Tooling Systems Inc. provides innovative, custom designed, built and installed manufacturing solutions to many of the world's most successful companies. Founded in 1978, ATS uses its industry-leading knowledge and global capabilities to serve the sophisticated automation systems' needs of multinational customers in industries such as healthcare, computer/electronics, automotive, energy and consumer products. It also leverages its many years of experience and skills to fulfill the specialized repetitive equipment manufacturing requirements of customers. Through Photowatt Technologies, ATS participates in the growing solar energy industry as an integrated manufacturer of ingots, wafers, cells and modules. Photowatt-branded products and systems serve businesses, institutions and homeowners in established and emerging markets. ATS employs approximately 3,500 people at 21 manufacturing facilities in Canada, the United States, Europe, Southeast Asia and China. The Company's shares are traded on the Toronto Stock Exchange under the symbol ATA. Visit the Company's website at www.atsautomation.com.
Note to Readers
This press release contains certain statements that constitute forward-looking information within the meaning of applicable securities laws ("forward-looking statements"). Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of ATS, or developments in ATS's business or in its industry, to differ materially from the anticipated results, performance, achievements or developments expressed or implied by such forward-looking statements. Forward-looking statements include all disclosure regarding possible events, conditions or results of operations that is based on assumptions about future economic conditions and courses of action. Forward-looking statements may also include, without limitation, any statement relating to future events, conditions or circumstances. ATS cautions you not to place undue reliance upon any such forward-looking statements, which speak only as of the date they are made. Forward-looking statements relate to, among other things, expected completion of the PCG sale and timing thereof. The risks and uncertainties that may affect forward-looking statements include, among others, exercise by one party of a right to terminate the transaction, failure of a party to meet closing conditions, delays or failure in obtaining all necessary approvals and consents, and other risks detailed from time to time in ATS's filings with Canadian provincial securities regulators, including ATS's Annual Report and Annual Information Form for the fiscal year ended March 31, 2008. Forward-looking statements are based on management's current plans, estimates, projections, beliefs and opinions, and ATS does not undertake any obligation to update forward-looking statements should assumptions related to these plans, estimates, projections, beliefs and
For further information:
Maria Perrella, Chief Financial Officer
Carl Galloway, Vice President and Treasurer