CAMBRIDGE, ON, Dec. 13 /CNW/ - ATS Automation Tooling Systems Inc. ofCambridge, Ontario and Autocam Corporation of Kentwood, Michigan todayannounced they have entered into a definitive agreement that will see ATS sellthe assets of its precision metals division to Autocam, a global leader inquality precision-machined solutions. The two companies have signed a binding purchase agreement and expect toclose the transaction in early January. The purchase price and the terms ofthe transaction were not disclosed.
The precision metals business of ATSemploys approximately 230 people at its facility in Kitchener, Ontario. ATSannounced its intention to divest the division earlier this year and hastreated it as a discontinued operation. Said Ron Jutras, ATS President and Chief Executive Officer: "This salefurther streamlines our Precision Components Group (PCG) and supports ourbroader strategy of focusing PCG on subassembly activities where it has keycompetitive advantages." ATS believes the proceeds of the transactionapproximate the net carrying value of the assets sold subject to workingcapital adjustments, if any, and fees associated with the transaction.
Said John Kennedy, Autocam's President and Chief Executive Officer: "Theassets we're acquiring are highly synergistic with our global capabilities andwill enable us to deliver additional services to our growing worldwidecustomer base."
About ATS
ATS Automation Tooling Systems Inc. ( www.atsautomation.com ) is theindustry's leading designer and producer of turn-key automated manufacturingand test systems, which are used primarily by multinational corporationsoperating in a variety of industries including: healthcare, automotive,computer/electronics and consumer products. ATS is also an emerging leader inthe rapidly growing market for solar energy cells and modules.
The Companyalso makes precision components and subassemblies using process knowledge andautomation technology. ATS employs approximately 4,000 people at 26manufacturing facilities in Canada, the United States, Europe and Asia-Pacific. The Company's shares are traded on The Toronto Stock Exchangeunder the symbol ATA.
About Autocam
Autocam serves automotive, medical and consumer products companies aroundthe world from 18 facilities in North America, South America, Europe and Asia.Founded in 1988, it employs more than 2,500 people. Among its corecompetencies are: precision turning, precision grinding, gear manufacturing,precision milling, forging, plastic molding, rotary transfer machining,precision secondary machining, sub-assembly, laser machining, finishing, heattreatment, precision cleaning, and precision measuring.
More information canbe found at www.autocam.com .