ATS Automation Tooling Systems Inc., a maker of factory automation systems in Cambridge, Ontario, has agreed to buy a German company M+W Process Automation GmbH and ProFocus LLC, an automation contractor that serves manufacturing and process-based industries.
ATS, which is publicly traded on the Toronto Stock Exchange, said it will buy all of the company, known as M+W PA, from M+W Group for about 248 million euros ($330 million).
M+W PA is based in Stuttgart. In 2013, the M+W PA generated revenues of about 166 million euros ($214 million) and about 20 million euros ($26 million) in earnings before interest, taxes, depreciation and amortization (EBITDA).
The purchase price is based on the enterprise value of about 248 million euros and is subject to net debt and working capital adjustments, according to ATS. The deal will be funded by a credit facility underwritten by the Bank of Nova Scotia and Toronto-Dominion Bank.
The move makes ATS more global. M+W PA employs 1,000 people, including about 750 engineers, and serves customers from 51 locations in 16 countries. The German company serves a variety of industries, including automotive, pharmaceutical, biotechnology, chemicals, food and oil and gas. Its services include consulting, system engineering, lifecycle management, process control and manufacturing execution systems.