ATS Automation Tooling Systems has signed an agreement to acquire all shares of IWK Verpackungstecknik as well as Oystar IWK USA, a pharmaceutical and personal care tube filling and cartoning machinery group for €103m.
The acquisition of German firm IWK is said to be in line with ATS' strategy of scaling its position in the global automation market, besides improving growth opportunities.
According to the Canadian designer of factory automation solutions ATS, IWK is expected to add core capability in primary packaging (tube fillers) and secondary packaging (cartoners).
ATS chief executive officer Anthony Caputo said, "This acquisition significantly enhances our capability, and deepens our involvement with two attractive customer segments, pharmaceuticals and consumer products."
IWK, which will continue to improve its portfolio and serve customers under its own brand as part of ATS, reported revenues of about €82m and earnings before interest, taxes, depreciation and amortization (EBITDA) of about €11m.
IWK is expected to contribute about $120m in revenues and $18m in EBITDA for its first full year within ATS.
ATS hopes to complete the acquisition in the third quarter of fiscal 2014.
