ATS completes the sale of its Precision Metals business
TSX: ATA
CAMBRIDGE, ON, Jan. 3 /CNW/ - ATS Automation Tooling Systems Inc. today
announced it has completed the sale of its precision metals business to
Autocam Corporation of Kentwood, Michigan. As part of the transaction, ATS
retained the land and building associated with this business and entered into
a lease agreement with Autocam.
The purchase price is subject to certain post-closing adjustments and ATS
indicated that the estimated gain or loss, if any, on this transaction will be
reported with its third quarter results (three months ended December 31,
2005). The signing of the sale agreement was announced on December 13, 2005.
The precision metals business employs approximately 200 people at one
facility in Kitchener, Ontario. ATS has treated this business as a
discontinued operation since it announced its intention to divest the
business.
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. Through its Solar Group, 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 its process knowledge and automation technology. ATS employs
approximately 3,900 people at 25 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.
Certain statements in this press release contain forward-looking
information within the meaning of applicable securities laws ("forward-looking
statements"). Such forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause the actual results, performance
or achievements of ATS, or developments in ATS's business or in its industry,
to differ materially from the anticipated results, performance, achievements
or developments expressed or implied by such forward-looking statements.
Forward-looking statements include all disclosure regarding possible events,
conditions or results of operations that is based on assumptions about future
economic conditions and courses of action. Forward-looking statements may also
include, without limitation, any statement relating to future events,
conditions or circumstances. ATS cautions you not to place undue reliance upon
any such forward-looking statements, which speak only as of the date they are
made. Forward-looking statements relate to, among other things, whether the
sale of its precision metals business will result in a net gain or loss. The
risks and uncertainties that may affect forward-looking statements include,
among others, uncertainties with respect to the amount of any working capital
adjustment and other related transaction costs under the terms of sale of the
precision metals business and other risks detailed from time to time in ATS's
filings with Canadian provincial securities regulators, including ATS's Annual
Report and Annual Information Form for the fiscal year ended March 31, 2005.
Forward-looking statements are based on management's current plans, estimates,
projections, beliefs and opinions, and ATS does not undertake any obligation
to update forward-looking statements should assumptions related to these
plans, estimates, projections, beliefs and opinions change.
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For further information: Carl Galloway, VP Treasurer; Gerry Beard, VP, CFO, (519) 653-6500