ATS Acquires Precision Plastic Injection Moulding Business to Complement Strong Existing Capabilities
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."
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.
For further information:
Ron Jutras, Executive Vice President and Chief Financial Officer
(519) 653 6500