BOC Acquires Precision Cleaning Technology from ATS;
ATS Secures 5 Year Contract Equipment Agreement with BOC
TSX: ATA
CAMBRIDGE, ON, July 14 /CNW/ - ATS Automation Tooling Systems Inc. today
announced it has sold the intellectual property and key operating assets of
its Eco-Snow(R) Systems Inc., division to The BOC Group for US$6.4 million
(Cdn$8.7 million) as part of a new strategic alliance between the two
companies.
As part of the transaction, BOC (NYSE:BOX) also entered into a five year
preferred contract equipment manufacturing agreement with ATS that will see
ATS continue to develop and manufacture Eco-Snow equipment for various high
volume production applications.
BOC intends to use its global market presence and industry leadership to
expand the markets for Eco-Snow, an innovative and proven carbon dioxide (CO2)
precision cleaning technology that ATS has applied successfully in a broad
range of applications including semiconductor, flat panel displays, photo
masks and disk drive manufacturing.
"BOC and Eco-Snow(R) Systems have worked together under a joint
development agreement for the past five years and BOC has acted as an
exclusive distributor for Eco-Snow throughout Asia since last summer, said
Neil Greenfield, Senior Vice President of BOC. "This experience has taught us
that there are many key applications for CO2 cleaning technology in our core
markets - applications that are attractive to us. By acquiring Eco-Snow, we've
added to the strength of our substantial technology portfolio, giving us
another valuable customer solution that we intend to market globally and
aggressively. The preferred contract equipment supply agreement we now have
with ATS will ensure we have secure access to world-leading automation design
and automated equipment that will allow us to quickly and fully implement the
technology as part of a total solution in high volume manufacturing areas."
In commenting on the announcement, Klaus Woerner, ATS President and Chief
Executive Officer said: "When we acquired Eco-Snow in 1997, our goal was to
turn it into a commercially viable technology and then use that technology to
penetrate, what at the time were new automation applications for ATS. We've
successfully accomplished both of these goals and believe the time is right
for Eco-Snow to gain broader market penetration. This transaction is ideal
because BOC has a worldwide gas distribution, sales, and service network with
a unique combination of expertise in electronics processes and CO2
applications, meaning they will accelerate adoption of Eco-Snow based cleaning
systems. ATS will therefore benefit because we retain the opportunity to
produce Eco-Snow systems for BOC on an attractive, contract equipment
manufacturing basis. ATS has targeted contract equipment manufacturing as an
important area for future growth, so we consider this agreement very
strategic.
"We believe this strategic alliance should have a powerful multiplier
effect for both BOC and ATS."
The Eco-Snow team of nine employees, based in Livermore, California will
now join BOC and the transition will be completely seamlessly for existing
Eco-Snow customers - a key consideration for both BOC and ATS. ATS said the
transaction has no impact on its earnings.
About Eco-Snow(R) Technology
Eco-Snow Systems, Inc. (www.eco-snow.com) is a pioneer in the use of
state-of-the-art precision surface processing technology for high-tech rigid
disk industries, compound semi-conductor, photo-mask repair, flat panel
display and MEMS manufacturing applications. As a leading innovator of dry CO2
technology - with more than 20 patents - Eco-Snow Systems' unique cleaning
method is cost effective, non-destructive, waste and residue free, and
eliminates staining and corrosion without recontamination. As such, it offers
substantial competitive advantages over conventional cleaning methods.
Eco-Snow(R) technology will be on display at SEMICON West (booth 418) in
San Francisco (www.semi.org) from July 14 to 16, 2003.
About BOC
The BOC Group (NYSE:BOX), the worldwide industrial gases, vacuum
technologies and distribution services company, serves two million customers
in more than 50 countries. It employs 46,000 people and had annual sales of
some $6 billion in 2002. Further information about The BOC Group may be
obtained on the Internet at http://www.boc.com.
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. This
includes a line of advanced thermal management devices used by computer
manufacturers to cool high-speed processors. 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
3,500 people at 25 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, Executive Vice President and Chief Financial Officer, (519) 653-6500