ATS Automation Systems acquires remaining interest in
advanced test systems business
TSE Symbol: ATA
CAMBRIDGE, ON, Oct. 30 /CNW/ - ATS Automation Tooling Systems Inc. today
announced it has acquired the remaining outstanding equity ownership of ATS
Test Systems Inc. ("ATS Test").
ATS originally purchased 51% of this Woodbridge, Ontario enterprise
(formerly Commissioned Systems and Engineering Ltd.) in a cash and share
transaction in July 1996. ATS has now acquired the remaining 49% equity
interest in this leading test systems business for a combination of cash and
the issuance of ATS common shares from treasury. The common shares issued by
ATS in connection with this latest purchase represent approximately 1/10th of
1% of ATS's outstanding shares and the aggregate consideration is less than
$4 million.
"Over the past six years, ATS Test has proven its worth to our customers
and shareholders," said Klaus Woerner, ATS President and Chief Executive
Officer. "This is reflected in the fact that its revenue has quadrupled to
$6 million in our last fiscal year and operating profits have also increased
correspondingly. Despite the downturn in customer capital spending over the
past 18 months, ATS Test performed well and is on track for another strong
year. We believe the future is bright for this business."
Mr. Woerner added that, "this transaction makes sense on all levels and
we believe this investment is a solid and strategic use of cash. Acquiring the
outstanding minority interest further recognizes the fact that ATS Test
provides important capabilities that add to our total turn-key automation
systems solutions and at the same time, simplifies our ownership structure. We
are very pleased that the founder will continue with a primary operational
role in the business going forward. Moreover, his increased share ownership in
ATS achieves a mutual objective of providing him with a powerful incentive to
contribute to the future success of both ATS and ATS Test."
About ATS Test Systems
Operating from a 29,000 square foot facility, just north of Toronto -
employing 49 people - ATS Test Systems provides turn-key, advanced test
equipment and software that is pivotal in a wide range of large-scale
repetitive manufacturing sectors. Its capabilities include design,
manufacture, software development, and maintenance of computerized
instrumentation, automated test and information systems. In addition to
internal sales within the ATS family of companies, these instrumentation and
test systems are frequently sold directly to end users. In addition ATS Test
supplies advanced turn-key solutions for sequenced, just-in-time delivery
systems directly to automotive manufacturers.
About ATS
ATS Automation Tooling Systems Inc. (www.atsautomation.com) is the
industry's leading designer and producer of turn-key automated manufacturing
and test systems, which are used primarily by multinational corporations
operating in a variety of industries including: automotive,
computer/electronics, healthcare, and consumer products. The Company also
makes precision components and sub-assemblies using its own custom-built
manufacturing systems, process knowledge and automation technology. Through
Photowatt International S.A., and Spheral Solar Power Inc., ATS is an emerging
leader in the rapidly growing market for solar energy cells and modules. ATS
employs approximately 3,200 people at 26 facilities in Canada, the United
States, Europe and Asia-Pacific. The Company's shares are traded on The
Toronto Stock Exchange under the symbol ATA.
Certain forward looking statements are made in this news release,
including statements regarding possible future business. Investors are
cautioned that such forward-looking statements involve risks and
uncertainties, including, without limitation, continued acceptance of ATS's
products, technologies, customer requirements and other risks detailed from
time to time in ATS's periodic reports filed with Canadian regulatory
authorities.
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For further information: Ron Jutras, Chief Financial Officer, (519) 653 6500 To request a free copy of this organization's annual report, please go to http://www.newswire.ca and click on reports@cnw.
© 2002 Canada Newswire Ltd.