ATS to Acquire KMW to Strengthen its Position in the Electric Vehicle (EV) Market
CAMBRIDGE, ON - 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.
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.
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.