ATS enters agreement to sell Precision Metals division
to Autocam
TSX: ATA
CAMBRIDGE, ON, Dec. 13 /CNW/ - ATS Automation Tooling Systems Inc. of
Cambridge, Ontario and Autocam Corporation of Kentwood, Michigan today
announced they have entered into a definitive agreement that will see ATS sell
the assets of its precision metals division to Autocam, a global leader in
quality precision-machined solutions.
The two companies have signed a binding purchase agreement and expect to
close the transaction in early January. The purchase price and the terms of
the transaction were not disclosed. The precision metals business of ATS
employs approximately 230 people at its facility in Kitchener, Ontario. ATS
announced its intention to divest the division earlier this year and has
treated it as a discontinued operation.
Said Ron Jutras, ATS President and Chief Executive Officer: "This sale
further streamlines our Precision Components Group (PCG) and supports our
broader strategy of focusing PCG on subassembly activities where it has key
competitive advantages." ATS believes the proceeds of the transaction
approximate the net carrying value of the assets sold subject to working
capital adjustments, if any, and fees associated with the transaction.
Said John Kennedy, Autocam's President and Chief Executive Officer: "The
assets we're acquiring are highly synergistic with our global capabilities and
will enable us to deliver additional services to our growing worldwide
customer base."
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: healthcare, automotive,
computer/electronics and consumer products. ATS is also an emerging leader in
the rapidly growing market for solar energy cells and modules. The Company
also makes precision components and subassemblies using process knowledge and
automation technology. ATS employs approximately 4,000 people at 26
manufacturing 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.
About Autocam
Autocam serves automotive, medical and consumer products companies around
the world from 18 facilities in North America, South America, Europe and Asia.
Founded in 1988, it employs more than 2,500 people. Among its core
competencies are: precision turning, precision grinding, gear manufacturing,
precision milling, forging, plastic molding, rotary transfer machining,
precision secondary machining, sub-assembly, laser machining, finishing, heat
treatment, precision cleaning, and precision measuring. More information can
be found at www.autocam.com.
ATS Forward-Looking Statement
Certain forward-looking statements are made in this news release,
including statements regarding possible future results and business. Investors
are cautioned that such forward-looking statements involve risks and
uncertainties. ATS's results could differ materially from those currently
anticipated due to a number of factors including, but not limited to, the
risks and uncertainties contained in the Company's fiscal 2005 MD&A and annual
report and other risks detailed from time to time in ATS's periodic reports
filed with Canadian regulatory authorities.
Autocam Forward-Looking Statement
Certain statements and information included in this release may
constitute "forward-looking statements" within the meaning of the Federal
Private Securities Litigation Reform Act of 1995. Such forward-looking
statements involve known and unknown risks, uncertainties and other factors,
which may cause the actual results, performance, or achievements of Autocam to
be materially different from any future results, performance, or achievements
expressed or implied in such forward-looking statements. Additional discussion
of factors that could cause actual results to differ materially from
management's projections, forecasts, estimates and expectations is contained
in Autocam's filings with the United States Securities and Exchange
Commission. Autocam does not undertake any obligation to update any
forward-looking statements, or to make any other forward-looking statements,
whether as a result of new information, future events or otherwise.
%SEDAR: 00002017E
For further information: ATS: Carl Galloway, VP Treasurer, Gerry Beard, VP, CFO, (519) 653-6500; Autocam: Mark R. Scott, Corporate Controller, (616) 698-0707