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ATS AUTOMATION ( 519 ) 653-6500 730 Fountain Street North , Cambridge , Ontario N3H 4R7 ATS ACQUIRES BIOPHARMA PROCESSING , LABORATORY EQUIPMENT AND LABWARE PROVIDER SP INDUSTRIES Cambridge , Ontario ( November 7 , 2021 ) - ATS Automation Tooling Systems Inc. ( TSX : ATA ) ( " ATS " or the " Company " ) , an industry - leading automation solutions provider , today announced it has entered into a definitive agreement to acquire SP Industries , Inc. ( " SP " ) , a designer and manufacturer of high - grade biopharma processing equipment , life sciences equipment , and lab apparatus products for US $ 445 million ( ~ C $ 550 million ) , subject to customary post - closing adjustments , representing 15.3x SP's trailing 12 month adjusted EBITDA or 11.9x post synergies ( 1 ) . " SP greatly expands our capabilities and offerings through the addition of its aseptic and non - aseptic lyophilization portfolio and its fill - finish solutions and enhances our position in the pharmaceutical drug development and production end - markets , " said Andrew Hider , CEO of ATS . " SP participates in highly attractive segments where growth is driven by a robust pharma drug pipeline , rising usage of biologics and increasing lyophilization of products . Notably , the combination of ATS and SP will allow us to better support the needs of our customers throughout the lifecycle of pharmaceutical development and production , as well as in diagnostics , broader life sciences and applied sciences applications . With its proven track record and talented team , SP will be a strong contributor to the ATS family offering compelling sales synergy potential with our life sciences businesses including Comecer . " Founded in 1982 and based in Warminster , Pennsylvania , SP offers a broad portfolio of research and commercial lyophilizers , aseptic fill - finish equipment and systems , life sciences equipment , and attractive and meaningful recurring revenues through its labware and glassware business . In the trailing 12 - months ended September 30 , 2021 , SP generated revenues of US $ 179 million and adjusted EBITDA of US $ 29 million . Approximately 70 % of its revenues are derived from customers in North America , 14 % from Europe , and the remainder from other regions . SP derives approximately 73 % of its sales from biopharma processing equipment and life sciences equipment , including services , and approximately 27 % from specialty lab and glassware products . SP employs approximately 700 employees spread across its nine manufacturing facilities and locations in the US , UK and Spain . SP will continue to be led by its CEO , Brian Larkin , who remarked , " We have observed ATS in action over the years and recognize its life sciences leadership and dedication to value creation for customers , some of whom are also customers of SP . As part of ATS , we will be able to grow to the next level with a focus on customer - driven innovation and further enhancing our value proposition in our targeted end - markets . " The transaction is expected to close in the fourth calendar quarter of 2021 , but no later than the first calendar quarter of 2022 , pending the completion of customary regulatory filings . ATS plans to fund the acquisition by drawing on its revolving credit facility . Attractive Synergy Opportunity ATS expects to realize approximately US $ 3.5 million in annual cost synergies within three years of acquisition , inclusive of material cost savings and production process optimization . ATS also expects revenue synergies to generate approximately US $ 5.0 million of additional EBITDA within three years . These synergies will be achieved by leveraging the combined ATS and SP technology portfolios to provide expanded turnkey customer solutions . The transaction is expected to be accretive to ATS ' earnings and cash flow per share metrics in the first year following the acquisition . ATS expects to achieve double digit return on invested capital ( ROIC ) by year four following completion of the acquisition . Conference Call and Webcast ATS will host an analyst conference call and accompanying webcast to discuss the transaction at 8:30 a.m. EDT on Monday November 8 , 2021. The presentation and webcast can be accessed live at www.atsautomation.com . To