Diverse manufacturer ATS Automation Tooling Systems Inc. has bolstered its stake in precision, small-part molding with the purchase of Micro Precision Plastics Ltd.
ATS paid C$8.6 million (US$5.7 million), including assumed debt, for Micro Precision, a C$10 million-per-year (US$6.6 million) custom injection molder in Bowmanville, Ontario. ATS molds precision parts, including gears, in Cambridge, Ontario, where it is based. ATS announced completion of the deal Feb. 3.
Micro Precision employs 84 in a 21,500-square-foot facility registered under ISO 9002. It runs 42 presses with clamping forces of 7-85 tons. It molds about 1,500 parts for automotive, electronic and consumer product customers.
Micro Precision was established in 1994. Officials did not disclose its former owners.
ATS' businesses include turnkey automated manufacturing and test systems, precision metal and plastic components and subassemblies and solar energy systems. Its Precision Components Group, of which plastic molding is a part, had sales of C$55.2 million (US$36.4 million) for the six months ended Sept. 30. Total sales for ATS in the period were C$291.3 million (US$192.3 million).
Ron Jutras, ATS chief financial officer, said in a telephone interview that the ATS plastic molding operation is larger than Micro Precision's, but he would not provide sales figures. ATS plans to keep the Bowmanville plant running, he added.
Micro Precision has specialty tooling technology that will help ATS cut lead times and improve customer service, said Bruce Seeley, vice president of ATS precision components.
Investment banker Aberdeen Gould of Toronto assisted in the transaction.