ATS Automation Tooling Systems Inc. has entered into a definitive agreement to acquire KMW Konstruktion, Maschinen- & Werkzeugbau GmbH & Co. KG and KMW GmbH, a German-based supplier of custom micro-assembly systems and test equipment solutions.
The addition of KMW’s micro-assembly technology and expertise are expected to strengthen ATS’ current offerings in the electric vehicle (EV) market.
Micro-assembly systems are critical elements in the assembly of various components used in electric vehicles, including motors, power storage systems, braking, steering, and electronic modules.
KMW is expected to provide ATS with an internal source for conveyor micro-assembly and test capabilities, further enabling the company to provide full automation solutions and meet customer demands for a complete turnkey offering.
“The EV market is one of strategic significance to ATS,” said Andrew Hider, ATS CEO. “Having the capabilities that KMW offers, in-house, will enhance our offering in the EV market, while reducing supplier risk.”
Established in 1993 and headquartered in Koblenz, Germany, KMW, has 68 employees and offers complete custom micro-assembly machines and solutions; clamps and tooling; and in-process test systems.
In its fiscal year ended March 31, 2018, KMW had revenues of approximately €14 million and an EBITDA margin of over 20%.
ATS will pay €19.5 million for KMW in an all-cash transaction and expects the deal to close in the third quarter of its fiscal 2019, subject to customary closing conditions.