Under the agreement, ATS subsidiaries will acquire operations in Dayton Ohio, Saginaw Michigan, Livonia Michigan and Neuwied Germany. The operations have capability in a number of specialized automation and test system applications and will complement and add to existing ATS Automation Systems Group ("ASG") capabilities. Together, the operations derive approximately two-thirds of their revenues from the automotive market, with the balance generated primarily in Life Sciences and Energy.

"The acquisition of the ATW businesses will add to our competency base and provide new relationships with a number of attractive automotive customers," said Anthony Caputo, ATS Chief Executive Officer. "As with the formation of our Life Sciences group earlier this year, this acquisition provides the critical mass to launch a group focused on transportation. We expect to launch additional groups as we grow and achieve scale in other customer markets."

The operations to be acquired have a combined workforce of approximately 300 including 60 in Germany. In calendar 2009, the operations had combined revenues of approximately US $65 million and had a mid-single digit EBITDA margin. Geographically, more than 80% of revenues are derived from US-based customers.

The final purchase price is expected to be approximately US $18.5 million (approximately CDN $18.6 million at current exchange rates). At closing, ATS subsidiaries will purchase certain assets and liabilities of the US operations and the shares of the German operation. Overall, net debt of approximately CDN $1 million will be assumed. ATS expects to complete the acquisition in the next several weeks, subject to several closing conditions, including customary consents and approvals and favourable introductory visits with targeted customers. The acquisition is expected to be accretive to EBIT and cash flow. The acquisition of the ATW businesses aligns with ATS's stated strategy of expanding its position in the global automation market and enhancing growth opportunities. The acquisition will be funded with cash on hand, making effective use of ATS's strong cash position.

ATS will target margin improvements at the operations to be acquired through integration of the businesses within its Transportation group, and the application of ATS best practices in command and control, program management, performance management and approach to market.

www.atsautomation.com.