It looks like the market approves. GLTA
08:53 AM EDT, 09/01/2021 (MT Newswires) -- ATS Automation Tooling Systems Inc. (ATA.TO), an automation solutions provider, on Wednesday said it acquired NCC Automated Systems Inc. for US$40 million.
ATS said the transaction consideration, which was funded by drawing on its revolving credit facility, represents 11.4x NCC's adjusted EBITDA for full year 2020. The company expects to realize about US$1.2 million in annual cost synergies as well as about US$1.8 million of additional EBITDA within three years of the transaction.
NCC provides turnkey automation solutions and manufactures high-precision pallet handling and sanitary conveyance products for customers in the food and packaging, ophthalmic, assembly automation and nutraceutical markets. The company will continue to be led by its president, Kevin Mauger.
ATS said the transaction is expected to be accretive to its earnings and cash flow per share in the first year from closing. The company also expects double-digit returns on invested capital by the third year since completion.
Price: 45.62, Change: +0.32, Percent Change: