CAMBRIDGE, ON, Sept. 13, 2018 /CNW/ - ATS Automation Tooling
Systems Inc. (TSX: ATA) ("ATS" or the "Company") an
industry-leading automation solutions provider, today announced
that it has entered into a definitive agreement to acquire KMW
Konstruktion, Maschinen- & Werkzeugbau GmbH & Co. KG and
KMW GmbH (collectively, "KMW"), a German-based supplier of custom
micro-assembly systems and test equipment solutions. The addition
of KMW's micro-assembly technology and expertise are expected to
strengthen ATS' current offerings in the EV market.
Micro-assembly systems are critical elements in the assembly of
various components used in electric vehicles, including motors,
power storage systems, braking, steering, and electronic modules.
KMW is expected to provide ATS with an internal source for
complimentary conveyorized micro-assembly and test capabilities,
further enabling the company to provide full automation solutions
and meet customer demands for a complete turnkey offering.
"The EV market is one of strategic significance to ATS," said
Andrew Hider, ATS CEO. "Having the
capabilities that KMW offers, in-house, will enhance our offering
in the EV market, while reducing supplier risk," Hider continued,
"I look forward to welcoming KMW's customers and employees to the
ATS family."
Established in 1993 and headquartered in Koblenz, Germany, KMW, has 68 employees and offers
complete custom micro-assembly machines and solutions; clamps and
tooling; and in-process test systems.
In its fiscal year ended March 31,
2018, KMW had revenues of approximately €14 million and an
EBITDA margin of over 20%.
ATS will pay €19.5 million for KMW in an all-cash transaction
and expects the deal to close in the third quarter of its fiscal
2019, subject to customary closing conditions.
About ATS
ATS is an industry-leading automation solutions provider to many of
the world's most successful companies. ATS uses its extensive
knowledge base and global capabilities in custom automation, repeat
automation, automation products and value-added services, including
pre-automation and after-sales services, to address the
sophisticated manufacturing automation systems and service needs of
multinational customers in markets such as life sciences,
chemicals, consumer products, electronics, food, beverage,
transportation, energy, and oil and gas. Founded in 1978, ATS
employs approximately 3,800 people at 20 manufacturing facilities
and over 50 offices in North
America, Europe,
Southeast Asia and China. The Company's shares are traded on the
Toronto Stock Exchange under the symbol ATA. Visit the
Company's website at www.atsautomation.com.
About KMW
KMW is a German based supplier of micro-assembly and test
solutions, clamping and tooling devices to leading Tier-1
automotive component manufacturers and leading international
companies in other industrial sectors. Founded in 1993 as a
spin-off from TRW, Koblenz, founder Wolfgang Olbrich, together with partner
Matthias Thieroff, developed the
Company into a provider of tailor-made, highly automated,
micro-assembly solutions to the automotive industry.
Note to Readers:
Non-IFRS Measures:
This document uses the non-IFRS measures EBITDA and EBITDA margin
to evaluate the performance of KMW. These terms do not have any
standardized meanings prescribed within IFRS and therefore may not
be comparable to similar measures presented by other companies.
These measures should not be considered in isolation or as a
substitute for measures of performance prepared in accordance with
IFRS. EBITDA is defined as earnings from operations excluding
depreciation and amortization (which includes amortization of
intangible assets). EBITDA margin is an expression of KMW's EBITDA
as a percentage of revenues. EBITDA is used by the Company to
evaluate the performance of operations. Management believes that
EBITDA is an important indicator of ability to generate operating
cash flows to fund continued investment in operations. Management
believes that ATS shareholders and potential investors in ATS use
these non-IFRS financial measures in making investment decisions
and measuring operational results.
Forward-Looking Statements:
This news release of ATS contains certain statements that may
constitute 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'
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: the strengthening and enhancement of ATS' current
offerings in the EV market; expectations relating to KMW as an
internal source for complimentary conveyorized micro-assembly and
test capabilities; reduction of supplier risk and improvement of
margins; and the expected timing of closing the transaction and
conditions in relation thereto. The risks and uncertainties that
may affect forward-looking statements include, among others: impact
of the global economy and general market performance including
capital market conditions and availability and cost of credit;
performance of the market sectors that KMW and ATS serve; foreign
currency and exchange risk; the relative strength of the Canadian
dollar; impact of factors such as increased pricing pressure and
possible margin compression; the regulatory and tax environment;
failure or delays associated with the new customer programs; that
this acquisition is not integrated as quickly or effectively as
planned or expected and, as a result, anticipated benefits,
enhancements and synergies are not realized; that KMW's business
does not perform as expected; inability to close the acquisition,
or delays in closing it, resulting from failure or delays in
relation to satisfying conditions of closing or other unanticipated
factors; that one or more customers, or other persons with which
KMW has contracted, experience insolvency or bankruptcy with
resulting delays, costs or losses; political, labour or supplier
disruptions; that we are unable to strengthen and enhance ATS'
current offerings in the EV market, reduce supplier risk, or
improve margins as expected; risks relating to legal proceedings to
which KMW and/or ATS is or may become a party; exposure to product
liability claims; risks associated with greater than anticipated
tax liabilities or expenses; and other risks detailed from time to
time in ATS' filings with Canadian provincial securities
regulators. Forward-looking statements are based on management's
current plans, estimates, projections, beliefs and opinions, and
other than as required by applicable securities laws, ATS does not
undertake any obligation to update forward-looking statements
should assumptions related to these plans, estimates, projections,
beliefs and opinions change.
SOURCE ATS Automation Tooling Systems Inc.