ATS completes sale of thermal products business
CAMBRIDGE, ON, Nov. 18 /CNW/ - ATS Automation Tooling Systems Inc. today announced that it has completed the planned sale of the assets which comprised its thermal products business - for approximately US $7.1 million in cash, net of disposition expenses.
"Today's sale of the thermal products assets is another important step forward in achieving our improvement goals within our Precision Components Group," said Klaus Woerner, ATS President and Chief Executive Officer. "We expect that under its new owner, the thermals business will benefit as part of a company that has complementary technologies and a substantial presence in Asia. This sale also frees up needed factory space to support growth in other areas of our business."
In anticipation of the sale, ATS treated the thermal products business as a discontinued operation in its recently reported second quarter results for the three months ended September 30, 2004. The sale will be reflected in the Company's third quarter (three months ended December 31, 2004) and is not expected to result in any significant gain or loss. The buyer cannot be identified because of confidentiality.
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. ATS is also an emerging leader in the rapidly growing market for solar energy cells and modules. ATS employs approximately 4,000 people at 26 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 growth prospects for the business and the impact of changes in management. 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, C.O.O. and Chief Financial Officer