ATS Automation Tooling Systems to acquire KMW and produce electric vehicles
September 13, 2018 by Manufacturing AUTOMATION
September 13, 2018 – Cambridge, Ontario–based automation solutions provider ATS Automation Tooling Systems Inc. has entered into a definitive agreement to acquire KMW Konstruktion, Maschinen- & Werkzeugbau GmbH & Co. KG and KMW GmbH (collectively, “KMW”), a German-based supplier of custom micro-assembly systems and test equipment solutions.
The addition of KMW’s micro-assembly technology and expertise are expected to strengthen ATS’ current offerings in the electric vehicle (EV) market.
Micro-assembly systems are critical elements in the assembly of various components used in electric vehicles, including motors, power storage systems, braking, steering and electronic modules. KMW is expected to provide ATS with an internal source for complimentary conveyorized micro-assembly and test capabilities, further enabling the company to provide full automation solutions and meet customer demands for a complete turnkey offering.
“The EV market is one of strategic significance to ATS,” says Andrew Hider, ATS CEO. “Having the capabilities that KMW offers in-house will enhance our offering in the EV market, while reducing supplier risk.”
Established in 1993 and headquartered in Koblenz, Germany, KMW has 68 employees and offers complete custom micro-assembly machines and solutions, clamps and tooling, and in-process test systems.
In its fiscal year ended March 31, 2018, KMW had revenues of approximately €14 million and an EBITDA margin of over 20 per cent.
ATS will pay €19.5 million for KMW in an all-cash transaction and expects the deal to close in the third quarter of its fiscal 2019, subject to customary closing conditions.
ATS specializes in custom automation, repeat automation and automation products. Founded in 1978, ATS employs approximately 3,800 people at 20 manufacturing facilities and over 50 offices in North America, Europe, Southeast Asia and China.
The company also announced this week that it landed a CAD $80-million contract from a global automotive manufacturer for a fully automated battery assembly system. The full order bookings include design, build, installation and post-delivery support, including training. The enterprise program is for a new customer, will involve three ATS facilities, and is expected to be delivered over the next two years.