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ATS Acquires Asia-Pacific Based System Integrator ZI-ARGUS

ATS Automation Tooling Systems Inc. (CNW Group/ATS Automation Tooling Systems Inc.)

News provided by

ATS Automation Tooling Systems Inc.

Oct 03, 2022, 17:00 ET

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CAMBRIDGE, ON, Oct. 3, 2022 /CNW/ - ATS Automation Tooling Systems Inc. (TSX: ATA) ("ATS" or the "Company") today announced that it has entered into a definitive agreement to acquire ZI-ARGUS ("ZIA"), a subsidiary of Zuellig Group. ZIA is a leading independent automation Systems Integrator in the ASEAN region and Australia, with a strong focus on process control, factory floor automation, data center and Industry 4.0 digitization solutions. The financial terms of the transaction were not disclosed.

ZIA will join ATS' Process Automation Solutions ("PA") business, a leading provider of complete automation solutions for the process and manufacturing industries. ZIA will significantly strengthen PA's position in attractive high-growth automation and digitalization markets in the region with proven expertise for customers in Pharma, Food & Beverage, Consumer Goods, Petrochemical, Biochemical, and Data Centers, while also accelerating PA's digitalization journey. The transaction is subject to the completion of certain closing conditions.

"ZIA provides us with a proven platform to serve domestic and global customers in industries that are strategic to us and in geographic regions that are highly complementary to our existing footprint," said Dr. Christian Debus, President of PA. "Additionally, ZIA's extensive technical capabilities will enhance PA's digitalization business, which is experiencing significant demand as customers seek to take full advantage of IIoT and smart factory advancements. We welcome ZIA's experienced team to PA."

About ZI-Argus

ZIA was founded almost 3 decades ago and headquartered in Bangkok, Thailand. ZIA, a leading independent system integrator in the ASEAN and Australia region, provides total solutions in process control, automation, engineering, process consultancy and plant optimization from 9 locations across Asia-Pacific. Visit the company's website at https://www.zi-argus.com/ for more details.

About Process Automation Solutions

Process Automation Solutions GmbH is one of the leading, manufacturer-independent suppliers of complete automation solutions for the process, manufacturing, and automotive industries. As a strong partner, PA's 1,400 automation experts in Europe, America and Asia support their customers during all phases of automation from planning to implementation and commissioning – and if desired, throughout the entire lifecycle of the plant through aftersales service. Visit PA's website at www.pa-ats.com.

About ATS Automation

ATS is an industry-leading automation solutions provider to many of the world's most successful companies. ATS uses its extensive knowledge base and global capabilities in custom automation, repeat automation, automation products and value-added solutions including pre-automation and after-sales services, to address the sophisticated manufacturing automation systems and service needs of multinational customers in markets such as life sciences, food & beverage, transportation, consumer products and energy. Founded in 1978, ATS employs over 6,000 people at more than 50 manufacturing facilities and over 75 offices in North America, Europe, Southeast Asia and China. The Company's shares are traded on the Toronto Stock Exchange under the symbol ATA. Visit the Company's website at www.atsautomation.com.

Forward-Looking Statements

This news release contains certain statements that may constitute forward-looking information within the meaning of applicable securities laws ("forward-looking statements"). Forward-looking statements include all statements that are not historical facts regarding possible events, conditions or results of operations that ATS believes, expects or anticipates will or may occur in the future, including, but not limited to: completion of the acquisition; expectations related to the positioning and strengthening of PA in the automation and digitalization markets; and expectations related to the digitalization of PA and its business. Such forward-looking statements are inherently subject to significant known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of ATS, or developments in ATS' business or in its industry, to differ materially from the anticipated results, performance, achievements or developments expressed or implied by such forward-looking statements. Important risks, uncertainties and factors that could cause actual results to differ materially from expectations expressed in the forward-looking statements include, but are not limited to, the  duration of the COVID-19 pandemic and its impact on the Company, its  employees, customers, suppliers and the global economy; impact of regional or global conflicts; general market performance including capital market conditions and availability and cost of credit; performance of the markets that ATS serves; industry challenges in securing the supply of labour, materials, and, in certain jurisdictions, energy sources such as natural gas, impact of inflation; foreign currency and exchange risk; the relative strength of the Canadian dollar; impact of factors such as increased pricing pressure, increased cost of energy and supplies, and delays in relation thereto, and possible margin compression; the regulatory and tax environment; that closing is delayed or prohibited as a result of the inability to complete closing conditions; the expectations related to positioning and strengthening of PA in the automation and digitalization markets, or in relation to the digitalization of PA and its business, are not realized as expected, or within the expected timeframe or at all; performance of the market sectors that PA and ZIA serve, and other risks and uncertainties detailed from time to time in ATS' filings with securities regulators, including, without limitation, the risk factors described in ATS' annual information form for the fiscal year ended March 31, 2022, which are available on the System for Electronic Document Analysis and Retrieval ("SEDAR") and can be accessed at www.sedar.com. ATS has attempted to identify important factors that could cause actual results to materially differ from current expectations, however, there may be other factors that cause actual results to differ materially from such expectations.

Forward-looking statements are necessarily based on a number of estimates, factors and assumptions regarding, among others, management's current plans, estimates, projections, beliefs and opinions, the future performance and results of the Company's business and operations; and general economic conditions and global events, including the COVID-19 pandemic.

Forward-looking statements included in this news release are only provided to understand management's current expectations relating to future periods and, as such, are not appropriate for any other purpose. Although ATS believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties, and ATS cautions you not to place undue reliance upon any such forward-looking statements, which speak only as of the date they are made. ATS does not undertake any obligation to update forward-looking statements contained herein other than as required by law.

SOURCE ATS Automation Tooling Systems Inc.

David Galison, Head of Investor Relations, (519) 653-6500, [email protected]

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ATS Automation Tooling Systems Inc.

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