CAMBRIDGE, Ontario - ATS Corporation (TSX: ATS) (NYSE: ATS), a provider of automation solutions, announced Monday the completion of its acquisition of assets from Heidolph Instruments, a manufacturer of lab equipment for life sciences and pharmaceutical industries. The acquisition, initially disclosed on August 7, 2024, extends ATS's capabilities in sophisticated manufacturing automation systems.
Heidolph Instruments is recognized for its high-quality laboratory equipment, serving the life sciences and pharmaceutical sectors. With this acquisition, ATS aims to enhance its product offerings and market reach in these industries. The financial terms of the acquisition have not been disclosed.
ATS Corporation, founded in 1978, operates more than 65 manufacturing facilities and over 85 offices worldwide, employing over 7,000 individuals. The company's shares trade on both the Toronto Stock Exchange and the New York Stock Exchange under the symbol "ATS."
The acquisition is in line with ATS's strategy to expand its global capabilities in custom automation, repeat automation, and value-added solutions, including pre-automation and after-sales services. ATS serves a wide range of markets, including life sciences, transportation, food & beverage, consumer products, and energy.
The company's growth through strategic acquisitions such as Heidolph Instruments demonstrates its commitment to addressing the advanced manufacturing automation systems and service needs of its multinational customers.
This latest development is part of ATS Corporation's ongoing efforts to strengthen its position as an industry leader in automation solutions. The information is based on a press release statement from ATS Corporation.
In other recent news, ATS Corporation has upsized its senior unsecured notes offering from an initial C$300 million to C$400 million. The notes, due in 2032, are expected to accrue interest payable semi-annually from February 2025. In line with this development, ATS has entered an underwriting agreement for a private placement offering.
Goldman Sachs has reiterated its Sell rating on ATS Corp, due to ongoing challenges despite ATS Corp's first-quarter adjusted EBITDA meeting consensus estimates. The firm has lowered its fiscal year 2025 earnings per share (EPS) estimate from $2.50 to $2.20, reflecting expected margin pressures and higher costs.
ATS Corporation has reported a surge in order bookings for the first quarter of fiscal year 2025, marking the second-highest bookings quarter in the company's history. Despite a decrease in revenues, primarily from the transportation segment, the company's backlog reached a record $1.9 billion. ATS plans to realign its EV business and acquired the majority of Heidolph Instruments' assets. The company expects Q2 revenue conversion to range between 33% and 36% of the backlog.
InvestingPro Insights
ATS Corporation's recent acquisition of Heidolph Instruments marks a strategic move to bolster its presence in the life sciences and pharmaceutical sectors. As investors consider the potential impact of this acquisition on ATS's financial performance, InvestingPro data and tips provide a deeper understanding of the company's current market position and future prospects.
According to InvestingPro data, ATS Corporation has a market capitalization of $2.53 billion and is trading at a P/E ratio of 19.03, which reflects investor expectations for future earnings. The company's P/E ratio has adjusted to 16.42 over the last twelve months as of Q1 2025, suggesting a more favorable valuation in light of its near-term earnings growth. The PEG ratio, which measures a stock's price relative to its earnings growth rate, stands at 0.76, indicating that the stock may be undervalued based on its growth potential.
InvestingPro Tips highlight that ATS is trading near its 52-week low and has experienced a significant price drop over the past three months, with a 15.35% decline in total return. This could present a buying opportunity for investors who believe in the company's long-term growth trajectory, especially considering that ATS is profitable over the last twelve months. Additionally, the company's liquid assets exceed its short-term obligations, providing financial stability and the ability to invest in growth opportunities such as the Heidolph Instruments acquisition.
Investors can find additional insights on ATS Corporation, including more InvestingPro Tips, by visiting https://www.investing.com/pro/ATS. There are currently 11 more tips available, offering further guidance for those looking to make informed investment decisions in the automation solutions sector.
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