ATS Automation to Acquire World Leading Spealized Healthcare Assembly Systems Manufacturer
CAMBRIDGE, ON, March 25, 2010 /CNW/ - ATS Automation Tooling Systems Inc. today announced it has entered into a
definitive agreement to acquire the Sortimat Group, a world leading manufacturer of specialized assembly systems for
medical products and pharmaceutical dosing devices.
Headquartered in Germany, and established in 1959, Sortimat has significant experience in advanced system
development, manufacturing, handling, and feeder technologies. Sortimat designs systems primarily for the medical
products and pharmaceutical devices markets. Over its successful history, it has delivered more than 2,500 programs
to global companies.
Sortimat's flagship assembly automation and handling operations are located near Stuttgart where it employs more than
70% of its 450 employees. It also has locations in Chicago and a small, 60% owned joint venture in India.
In calendar 2009, Sortimat had revenues of approximately Euro 57 million and a high single digit EBITDA margin.
Healthcare accounts for approximately 75%of Sortimat's worldwide revenue with the balance derived from consumer and
automotive markets. Geographically, 80% of revenues are derived from European customers.
The final purchase price is expected to be up to Euro 45 million (approximately CDN $62 million at current exchange
rates). At closing, ATS will make a payment of Euro 38.4 million from existing cash balances. Future payments of up
to Euro 6.6 million are payable subject to achievement of milestones related to EBIT performance and specific
management services over the next 2.5 years. ATS expects to complete the acquisition in the first quarter of fiscal
2011, subject to customary closing conditions, including applicable regulatory approval. The acquisition is expected
to be accretive to EBIT and cash flow.
The acquisition of Sortimat aligns with ATS's stated strategy of expanding its leading position in the global
automation market and enhancing growth opportunities, particularly in strategic segments, such as healthcare. The
acquisition will be funded with cash on hand, making effective use of ATS' strong cash position.
"We welcome the addition of Sortimat's highly skilled people, customers, complementary technologies, scale and
presence to our world leading automation business," said Anthony Caputo, ATS Chief Executive Officer. "This
acquisition gives us the critical mass to organize ATS marketing and divisions into a group focused on healthcare and
we intend to grow our exposure to this attractive market by helping our customers differentiate themselves from their
competitors."
