ATS acquires precision plastic injection
moulding business to complement strong
existing capabilities
TSX: ATA
CAMBRIDGE, ON, Feb. 3 /CNW/ - ATS Automation Tooling Systems Inc. today
announced it has acquired a leading micro-precision plastic injection moulding
company to add to the industry-leading capabilities of its Precision
Components Group.
The acquisition of Micro Precision Plastics (MPP) -- for total
consideration of $8.6 million including assumed debt -- is now finalized. MPP
is a fast growing, profitable, privately-held company with annual sales of
approximately $10 million. Based in Bowmanville, Ontario, MPP is a leading
supplier of high-quality, micro-precision injection moulded components and
tooling to a diverse number of leading companies in the automotive, electronic
and consumer products areas.
"ATS already has a strong and profitable plastics division and the
acquisition of MPP nicely complements our existing capabilities," said Bruce
Seeley, ATS Vice President of Precision Components. "With this acquisition, we
add several new and attractive customers, MPP's unique micro-moulding
capabilities and demonstrated expertise in high tolerance components including
small gears. Financially, we purchased a small but growing company at a
reasonable price -- and we gained some unique tooling concepts we can transfer
to enhance our lead times and customer service.
"ATS Precision Components is strategically positioned to serve many
markets as a value-added sub-assembly supplier and this acquisition is
consistent with our strategy of adding complementary capabilities that further
our business case with existing and new customers."
Founded in 1994, Micro Precision Plastics employs 84 people at a 21,500
square foot, ISO 9002 manufacturing facility that produces approximately 1,500
products using 42 light tonnage (7-85 tons) moulding machines.
"This is a growing business that has relied strictly on word of mouth
from satisfied customers to expand and that expansion has been solid," said
Mr. Seeley. "By joining a company with the scope and industry-leading presence
of ATS, and putting MPP's capabilities in the hands of ATS's dedicated sales
force, we can fuel overall growth."
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 28 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
-30-
For further information: Ron Jutras, Executive Vice President and Chief Financial Officer, (519) 653 6500