ATS announces sale of Berlin coil winding business .......................................
June 09, 2006
CAMBRIDGE, ON
- ATS Automation Tooling Systems Inc. today announced it has sold the assets of its Berlin, Germany coil winding subsidiary to a private, German-based company. This automation systems business, which occupies a 23,000 sq. ft. leased facility, had revenues of $8.9 million and an operating loss of approximately $0.6 million in fiscal 2006.
"This latest transaction reflects our continuing drive to sharpen our focus on those areas of our business that we believe offer the greatest opportunities and rewards," said Ron Jutras, ATS President and CEO. "The sale of the Berlin business today follows the divestiture of our Precision Metals business in January, the closure of the Niagara ASG facility in December 2005, and the closure of the McAllen Texas PCG facility in July 2005. These actions are only one element of a broader group of steps we're employing, all of which are intended to improve margins and returns across our business - both near term and in future - in direct response to changes in our markets and the pursuit of new opportunities. Our initiatives also include further actions designed to reduce costs, increase focus on strategic customer accounts that offer the greatest long-term potential, strengthen our global business platform and expand our capabilities in targeted markets, including China and at Omex, both announced last month."
The name of the purchaser and transaction terms were not disclosed. ATS expects to record a non-cash loss in respect of the sale of no more than $2 million in its first quarter of fiscal 2007. |
