ATS Automation Tooling Systems (
TSX:ATA,
Stock Forum) advanced its aim of increasing its position in the global automation market when it announced today that the company had entered into a definitive agreement to acquire all the shares of M+W Process Automation GmbH and ProFocus LLC (M+W PA).
According to the
news release, M+W PA will add to the company’s services and life-cycle management capabilities spanning several core elements of the customer supply chain with M+W PA’s long-established expertise in a wide array of manufacturing and process-based industries including automotive, pharmaceutical, biotechnology, chemicals, oil & gas and food.
Founded in Ludwigshafen, Germany in 1986, M+W PA, carries a workforce of 1,000, including an estimated 750 engineers, serving clients in 51 locations in 16 countries across the globe and during fiscal 2013, M+W PA generated revenues of €166.0 million with €188.0 million in order bookings and approximately €120.0 million of backlog as of May 2014.
The transaction purchase price was based on an enterprise value of approximately €248.0 million, subject to debt and working capital adjustments and will be funded by a new fully committed $600.0 million credit facility underwritten by the Bank of Nova Scotia and The Toronto-Dominion Bank.
The acquisition is expected to close by the end of September 2014 and is still subject to customary closing conditions and necessary antitrust approvals.
ATS was in the news recently when
the company reported its Q4 and year-end 2014 financial results at the end of May.
Shares gained 6.91% on the news to $16.08 per share.
Currently there are 90.9m outstanding shares with a market cap of $1.5 billion.