ATS Corporation to snap up Avidity Science in $195m deal
In a calculated move to bolster its automation solutions portfolio, ATS Corporation (TSX: ATS) (NYSE: ATS), globally recognized as a leading automation solutions provider, has officially unveiled its intentions to acquire Avidity Science, LLC. The acquisition, costing $195 million (equivalent to approximately C$265 million), positions Avidity, a trailblazer in automated water purification solutions catering to biomedical and life science arenas, under ATS’s expansive umbrella.
Avidity Science, headquartered in Waterford, Wisconsin and established in 1969, has earned accolades for its sophisticated automated watering systems. These systems are indispensable in environments that demand unwavering precision and integrity. Catering to a global clientele spanning pharmaceutical, biopharma, healthcare sectors, and more, Avidity posted impressive revenues of US$81.9 million as of December 31, 2022. Furthermore, it showcased a robust 20.4% adjusted EBITDA margin, with around 40% of its revenue steered by reoccurring streams, such as consumables, SaaS, and a suite of aftermarket services. A workforce of approximately 380 seasoned professionals across facilities in the US, UK, China, and Japan stands testament to Avidity’s global operational expanse.
Andrew Hider, ATS Corporation’s CEO, elucidated on the strategic move, stating, “Avidity’s state-of-the-art water purification systems solidify the trust of researchers at pivotal stages of drug discovery and development. This acquisition reinforces ATS’s commitment to encompassing all facets of life sciences, from research and drug discovery to commercial production.”
Prakash ‘Cash’ Mahesh, Group Executive for ATS Life Sciences, mirrored this sentiment, emphasizing, “Acquiring Avidity amplifies our value to both our existing and potential customers. Their expertise seamlessly aligns with our previous acquisitions, underscoring our mission to leave a lasting impact on the quality of life globally.”
The transaction, subject to standard regulatory filings, is projected to conclude in the concluding quarter of 2023. The deal anticipates realizing US$1.5 million and US$2.6 million in cost and commercial synergies by the third and fifth years respectively, post-acquisition.