ATS Acquires Conveyor Systems Manufacturer NCC Automated Systems

PB 22 ATS Logo 400

September 7, 2021

ATS Automation Tooling Systems Inc., a major automation solutions provider, recently announced it has acquired NCC Automated Systems, Inc., a provider of engineered to order sanitary automation solutions and stand-alone precision conveyance equipment for US$40 million (~C$50 million), subject to customary post-closing adjustments, representing 11.4x NCC’s FY2020 adjusted EBITDA or 6.2x post synergies. ATS has funded the acquisition by drawing on its revolving credit facility.

“The acquisition of NCC expands our portfolio of precision conveyor technologies through the addition of adjacent and complementary products to ATS’ SuperTrak, addressing an important pillar of ATS’ automation products strategy while enhancing our position in the food and beverage end-market,” said Andrew Hider, CEO of ATS. “NCC’s strong design software toolkit also allows us to play a more holistic role in supporting the needs of our customers from the design phase through to implementation by bridging the connection between the design engineer and manufacturing operator.”

Founded in 1986 and based in Souderton, Pennsylvania, NCC, an employee-owned company, provides turnkey automation solutions under the NCC and Nutra-Pack brands and manufactures high precision pallet handling and sanitary conveyance products under the Glide-Line and SideDrive brands, serving customers in the food and packaging, ophthalmic, assembly automation and nutraceutical markets. In FY2020, NCC generated revenues of US$31 million and EBITDA of US$3.5 million. Over the five-year period ending in FY2020, NCC posted approximately 8% revenue compound annual growth rate (CAGR). The majority of the company’s revenues are derived from customers in North America. By end-market, in FY2021 NCC is expected to generate approximately half of its sales from food and packaging, 25% from optical, 21% from assembly automation, and the balance from other markets. The sale of automation systems is expected to comprise approximately 68% of revenues, with standalone conveyance products generating approximately 23% of revenues and the balance derived from aftermarket services. NCC employs 92 employees at its US manufacturing facility.

NCC will continue to be led by its President, Kevin Mauger. “It was evident from our early conversations with ATS’ management team that our two companies share strong alignment when it comes to our culture, business plans, vision and purpose,” commented Kevin Mauger, President of NCC. “By being part of the ATS family, we are better able to execute on our plans and drive strong growth across our business units.”

Attractive Synergy Opportunity

ATS expects to realize approximately US$1.2 million in annual cost synergies within three years of acquisition, including supply chain savings and operational efficiencies. ATS also expects revenue synergies to generate approximately US$1.8 million of additional EBITDA within three years by leveraging the combined ATS and NCC technologies in turnkey customer solutions and joint product development. The transaction is expected to be accretive to ATS’ earnings and cash flow per share metrics in the first year following the acquisition. ATS expects double-digit returns on invested capital (ROIC) by year three following completion of the acquisition.

Source

Related Articles


Changing Scene

  • Wesco Opens State-of-the-Art Facility in Eastern Canada to Support Influx of Megaprojects in the Region

    Wesco Opens State-of-the-Art Facility in Eastern Canada to Support Influx of Megaprojects in the Region

    Wesco International has recently announced the grand opening of a new state-of-the-art facility on Higney Avenue in Dartmouth, Nova Scotia, Canada, making this the largest facility of any distributor in the Atlantic region. The new building, facilitated by Touchette Real Estate, a division of Groupe Touchette, will feature Wesco’s comprehensive suite of services and solutions including… Read More…

  • PataBid Nominated for Canadian Choice Award in Software Services

    PataBid Nominated for Canadian Choice Award in Software Services

    PataBid is proud to announce its nomination for a Canadian Choice Award in the Software Services category. This recognition highlights PataBid’s commitment to supporting the electrical contracting community across Canada by providing innovative estimating software solutions that streamline estimating processes and ensure predictable and profitable projects. Read More…


Sponsored Content
The Easy Way to the Industrial IoT

The way to the Industrial IoT does not have to be complicated. Whether access to valuable data is required or new, data-driven services are to be generated, Weidmuller enables its customers to go from data to value the easy way. Weidmuller’s comprehensive and cutting-edge IIoT portfolio applies to greenfield and brownfield applications. Weidmuller offers components and solutions from data acquisition, data pre-processing, data communication and data analysis.

Visit Weidmuller’s Industrial IoT Portfolio.


ADVANCED Motion Controls Takes Servo Drives to New Heights (and Depths) with FlexPro Extended Environment Product Line

Advanced Motion Controls is proud to announce the addition of six new CANopen servo drives with Extended Environment capabilities to their FlexPro line. These new drives join AMC’s existing EtherCAT Extended Environment FlexPro drives, making the FlexPro line the go-to solution for motion control applications in harsh environments.

Many motion control applications take place in conditions that are less than ideal, such as extreme temperatures, high and low pressures, shocks and vibrations, and contamination. Electronics, including servo drives, can malfunction or sustain permanent damage in these conditions.

Read More


Service Wire Co. Announces New Titles for Key Executives

Bruce Kesler and Mark Gatewood have been given new titles and responsibilities for Service Wire Co.

Bruce Kesler has assumed the role of Senior Director – Business Development. Bruce will be responsible for Service Wire’s largest strategic accounts and our growing Strategic Accounts Team.

Mark Gatewood has been promoted to the role of Vice President – Sales & Marketing. In this role, Gatewood will lead the efforts of Service Wire Company’s entire sales and marketing organization in all market verticals.

Read More


Tri-Mach Announces the Purchase of an Additional 45,000 sq ft. Facility

Tri-Mach Elmira Facility

Recently, Tri-Mach Inc. was thrilled to announce the addition of a new 45,000 sq ft. facility. Located at 285 Union St., Elmira, ON, this facility expands Tri-Mach’s capabilities, allowing them to better serve the growing needs of their customers.

Positioning for growth, this additional facility will allow Tri-Mach to continue taking on large-scale projects, enhance product performance testing, and provide equipment storage for their customers. The building will also be the new home to their Skilled Trades Centre of Excellence.

Read More


JMP Parent Company, CONVERGIX Acquires AGR Automation, Expanding Global Reach

Convergix Automation Solutions has completed the acquisition of AGR Automation (“AGR”), a UK-based provider of custom, high-performance automation design and systems integration primarily to the life sciences industry.

Following Convergix’s acquisitions of JMP Solutions in August 2021 and Classic Design in February 2022, AGR marks the third investment in Crestview’s strategy to build Convergix into a diversified automation solutions provider targeting the global $500+ billion market, with a particular focus on the $70 billion global systems integration and connectivity segments. Financial terms of the transaction were not disclosed.

Read More


Latest Articles

  • How Advanced X-Ray and AI Inspection Technologies Optimize Quality Control and Reduce Costs in SMT Manufacturing

    How Advanced X-Ray and AI Inspection Technologies Optimize Quality Control and Reduce Costs in SMT Manufacturing

    Explore how Omron’s latest X-Ray machines and AI-driven solutions are setting new standards in manufacturing efficiency and quality control. The manufacturing landscape is swiftly evolving, and Omron is at the forefront with its innovative PCB inspection machines. These systems offer profound insights into SMT production process, enhanced quality control, and can significantly reduce labor costs. Advancements… Read More…

  • KUKA Establishes New Software and Digital Business Segment

    KUKA Establishes New Software and Digital Business Segment

    Software is playing an increasingly important role in mechanical engineering. What used to be mostly solved mechanically is now done by electronics and the associated software. “With KUKA Digital, we are expanding our offering in order to position ourselves broadly for a market with strong growth potential. Our customers need products, solutions and consulting approaches to digitalize… Read More…