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ATS Automation Finalizes Sale of Precision Components Group
ATS Automation Posted 01/08/2009
ATS Automation Tooling Systems Inc. (‘‘ATS’‘) has finalized the previously announced sale of the key operating assets and liabilities of Precision Components Group (‘‘PCG’‘).
The purchaser satisfied a portion of the purchase price by issuing promissory notes to ATS and the balance was paid in cash. PCG employs approximately 300 people at three facilities, two of which are located in Canada and one in China. The transfer of PCG's Chinese operations remains subject to receipt of approvals from the Chinese government, which are expected in the first quarter of calendar 2009. Pending receipt, a portion of the total purchase price allocated to the Chinese operations is being held in escrow.
‘‘The divestiture of PCG, to a group led by PCG management, is consistent with our stated strategy and allows ATS to continue to focus on strategic operations,’‘ said Anthony Caputo, Chief Executive Officer. ‘‘We believe this transaction is in the best interests of all ATS employees and shareholders.’‘
ATS Automation Tooling Systems Inc. provides innovative, custom designed, built and installed manufacturing solutions to many of the world's most successful companies. Founded in 1978, ATS uses its industry-leading knowledge and global capabilities to serve the sophisticated automation systems' needs of multinational customers in industries such as healthcare, computer/electronics, energy, automotive and consumer products. It also leverages its many years of experience and skills to fulfill the specialized automation product manufacturing requirements of customers. Through Photowatt Technologies, ATS participates in the growing solar energy industry as an integrated manufacturer of ingots, wafers, cells and modules. Photowatt-branded products and systems serve businesses, institutions and homeowners in established and emerging markets. ATS employs approximately 3,100 people at 18 manufacturing facilities in Canada, the United States, Europe, Southeast Asia and China. The Company's shares are traded on the Toronto Stock Exchange under the symbol ATA. Visit the Company's website at www.atsautomation.com.
Note to Readers
This press release contains certain statements that constitute forward-looking information within the meaning of applicable securities laws (‘‘forward-looking statements’‘). Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of ATS, or developments in ATS's business or in its industry, to differ materially from the anticipated results, performance, achievements or developments expressed or implied by such forward-looking statements. Forward-looking statements include all disclosure regarding possible events, conditions or results of operations that is based on assumptions about future economic conditions and courses of action. Forward-looking statements may also include, without limitation, any statement relating to future events, conditions or circumstances. ATS cautions you not to place undue reliance upon any such forward-looking statements, which speak only as of the date they are made. Forward-looking statements relate to, among other things, the expectation of approvals from the Chinese government and timing thereof. The risks and uncertainties that may affect forward-looking statements include, among others, delays or failure in obtaining all necessary approvals and consents, and other risks detailed from time to time in ATS's filings with Canadian provincial securities regulators, including ATS's Annual Report and Annual Information Form for the fiscal year ended March 31, 2008. Forward-looking statements are based on management's current plans, estimates, projections, beliefs and opinions, and ATS does not undertake any obligation to update forward-looking statements should assumptions related to these plans, estimates, projections, beliefs and opinions change.