ATS To Acquire Biomedical Research & Life Sciences Water Purification Equipment Provider Avidity Science PR
ATS To Acquire Biomedical Research & Life Sciences Water Purification Equipment Provider Avidity Science PR NewsWire News Release 2023-09-22T07:01:00-04:00
CAMBRIDGE, ON, Sept. 22, 2023 /PRNewswire/ - ATS Corporation (TSX: ATS) (NYSE: ATS) ("ATS" or the "Company") a leading automation solutions provider, today announced it has entered into a definitive agreement to acquire Avidity Science, LLC ("Avidity"), a growing designer and manufacturer of automated water purification solutions for biomedical and life science applications, for US$195 million (~C$265 million), representing 11.2x Avidity's projected calendar 2023 adjusted EBITDA1,2, or 10.3x Avidity's projected calendar 2023 synergy-adjusted EBITDA1,2. The Company expects US$1.5 million of cost and commercial synergies by year 3, and US$2.6 million of cost and commercial synergies by year 5. The acquisition is subject to customary post-closing adjustments.
"ATS works to support our customers in all areas of life sciences from research, to drug discovery, right through to commercial production," said Andrew Hider, Chief Executive Officer of ATS Corporation. "Avidity's capabilities provide researchers confidence in their data during key stages of drug discovery, development and testing through their water purification and delivery systems."
Founded in 1969 and based in Waterford, Wisconsin, Avidity offers automated watering systems for critical environments where strict variable controls and integrity are crucial. It serves a diverse global customer base of pharmaceutical, biopharma, healthcare, government, and academic research facilities. In its financial year ended December 31, 2022, Avidity generated revenues of US$81.9 million, and a 20.4% adjusted EBITDA margin2. Approximately 40% of Avidity's revenue is reoccurring2 in nature, and includes the sale of consumables, SaaS, and aftermarket service and support. Avidity employs approximately 380 skilled professionals across six facilities in the United States, United Kingdom, China, and Japan.
"This acquisition will bolster our value proposition for both new and existing customers, in addition to aligning well with other accretive acquisitions we have made," added Prakash 'Cash' Mahesh, Group Executive for ATS Life Sciences. "It also supports our ATS Life Sciences purpose of positively impacting the quality of life for billions of people around the world."
The transaction is expected to close in the fourth calendar quarter of 2023, pending completion of customary regulatory filings. ATS plans to fund the acquisition with cash and by drawing on its revolving credit facility, which will result in a pro forma leverage of 2.5x net debt to the last twelve months adjusted EBITDA3,4.
ATS will host a conference call and webcast at 8:30 a.m. Eastern Time today to discuss the acquisiton. The listen-only webcast can be accessed live at www.atsautomation.com. The conference call can be accessed live by dialing (416) 764-8688 or (888) 390-0546 five minutes prior. A replay of the conference will be available on the ATS website following the call. Alternatively, a telephone recording of the call will be available for one week (until midnight September 29, 2023) by dialing (416) 764-8677 and entering passcode 128787 followed by the number sign.
ATS Corporation is an industry-leading automation solutions provider to many of the world's most successful companies. ATS uses its extensive knowledge base and global capabilities in custom automation, repeat automation, automation products and value-added services including pre-automation and after-sales services, to address the sophisticated manufacturing automation systems and service needs of multinational customers in markets such as life sciences, food & beverage, transportation, consumer products, and energy. Founded in 1978, ATS employs over 6,500 people at more than 60 manufacturing facilities and over 80 offices in North America, Europe, Asia, and Oceania. The Company's common shares are traded on the Toronto Stock Exchange and the New York Stock Exchange under the symbol ATS.
Avidity Science is a worldwide leader in water purification and delivery, control and monitoring and service solutions for the life science and biomedical research communities. Since 1969, our mission has been to enable science to improve the quality of life. With operations in the United States, Europe, and Asia, we are a trusted partner to the global research community through differentiated technology and support. For more information about our company, please visit www.AvidityScience.com.
This press release contains certain statements that may constitute forward-looking information and forward-looking statements within the meaning of applicable Canadian and United States securities laws ("forward-looking statements"). All such statements are made pursuant to the "safe harbour" provisions of Canadian provincial and territorial securities laws and the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical facts regarding possible events, conditions, or results of operations that ATS believes, expects or anticipates will or may occur in the future, including, but not limited to: the completion of the acquisition of Avidity; Avidity's projected adjusted EBITDA; the estimated future synergies; ATS's value proposition; and the projected debt leverage ratio.
--------------------------------------------------
