ATS Automation Tooling Systems snaps up Sortimat for €45 million

ATS Automation Tooling Systems (TSX:ATA) is acquiring Germany’s Sortimat Group, a manufacturer of specialized assembly systems for medical products and pharmaceutical dosing devices.  Sortimat's main assembly automation and handling operations are located near Stuttgart but it also has locations in Chicago, USA and India.

Toronto listed ATS is paying up to €45 million (CDN$62 million) in cash over 2.5 years.

According to ATS, in 2009 Sortimat had revenues of approximately €57 million and a “high single digit EBITDA margin”. Healthcare accounted for approximately 75% of Sortimat's revenues with 80% of revenues derived from European customers.

“The acquisition of Sortimat aligns with ATS's stated strategy of expanding its leading position in the global automation market and enhancing growth opportunities, particularly in strategic segments, such as healthcare,” ATS stated.

"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, ATS Chief Executive Officer. "This acquisition gives us the critical mass to organize 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."

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