Factory Automation Systems Integrator ATS acquires electrical controls firm to increase European capabilities, growth potential

ATS acquires electrical controls firm to increase European capabilities, growth potential

 
   TSX: ATA

    CAMBRIDGE, ON, Dec. 2 /CNW/ - ATS Automation Tooling Systems Inc. today
announced it is acquiring an electrical controls company in Munich, Germany as
part of its strategy to increase its capabilities in Europe and gain control
over an important technology.
    The acquisition of Magnet GmbH - for approximately $3 million - will
close in December. A profitable, privately-held company, Magnet provides a
range of control technology, including electrical controls design, controls
programming, electrical wiring and the supply of test systems.
    "From a strategic perspective, the acquisition enables ATS to gain
complete control over the quality, cost and delivery of this important element
of every automation system," said Klaus Woerner, ATS President and Chief
Executive Officer. "From a capabilities perspective, the expertise required to
build this technology is in short supply in Europe so the purchase allows us
to capture a scarce resource and bring it totally in house. It also reduces
ATS Munich's dependency on outsourcing and allows us to improve our profit
margin potential going forward."
    Magnet and its 10 skilled employees will be amalgamated with ATS Munich.
Mr. Woerner said he expects the integration will be rapid, since "Magnet is
extremely familiar with our technology, with our customer-focused approach and
has been a qualified supplier to ATS Munich for many years."
    Mr. Woerner added that "this is just the latest example of our long-
standing strategy of making tuck-under acquisitions in various important
regions of the world that enable us to round out our turn-key capabilities to
better serve customers and shareholders."
    In the last five fiscal years, ATS has generated approximately $319
million in automation systems revenue in Europe.

    Corporate Description

    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 27 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.

%SEDAR: 00002017E

For further information: Ron Jutras, Executive Vice President and Chief 
Financial Officer, (519) 653 6500


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