ATS Automation Tooling Systems Buys Sortimat

Automation specialist, ATS Automation Tooling Systems Inc. is to purchase the Sortimat Group, a manufacturer of specialised assembly systems for medical products and pharmaceutical dosing devices, reports ECOreporter.de.

Headquartered in Germany, Sortimat is experienced in advanced system development, manufacturing, handling and feeder technologies primarily for healthcare products, which account for approximately 75% of its worldwide revenue, the balance being derived from consumer and automotive markets.

ATS Automation Tooling Systems Inc. provides innovative, custom designed, built and installed manufacturing solutions, offering the sophisticated automation systems to multinational customers in a range of industries.This acquisition confirms its stated strategy of expanding its position in the global automation market and enhancing growth opportunities, particularly in strategic segments such as healthcare.

The acquisition will be funded with cash, according to ECOreporter.de. The final purchase price is expected to be euro 45 million. 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 year 2011, subject to customary closing conditions, including applicable regulatory approval.

Sortimat’s 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 2009, it had revenues of approximately euro 57 million. Geographically, 80% of its revenues are derived from European customers.

“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, Chief Executive Officer of ATS. “This acquisition gives us the critical mass to organise 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.”

ATS will target margin improvements at Sortimat through expat deployment and the application of ATS best practices in command and control, program management, performance management and approach to market.

Update: The company has announced that it will unveil a new version of its Jetwing system at Automatica in Munich.

Tags: ATS Automation Tooling Systems Inc, Sortimat Group