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

  • Westburne and Kinova Announce Groundbreaking Partnership

    Westburne and Kinova Announce Groundbreaking Partnership

    Westburne is thrilled to announce a groundbreaking partnership that is set to redefine the landscape of collaborative robotics. Westburne has joined forces with Kinova, a global provider in robotics innovation, to deliver cutting-edge solutions that will transform industries and elevate Westburne’s commitment to technological advancement. This partnership marks a significant milestone in Westburne’s journey towards… Read More…

  • ABB Appoints Morten Wierod to Succeed Björn Rosengren as CEO

    ABB Appoints Morten Wierod to Succeed Björn Rosengren as CEO

    The ABB Board of Directors has appointed Morten Wierod as Chief Executive Officer. He will take office on August 1, 2024, and succeed Björn Rosengren, who will step down from his position as Chief Executive Officer effective July 31, 2024, and retire as of December 31, 2024. From August 1, 2024, until the end of… 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

  • Helping McMaster University Adapt its Buildings for the Future

    Helping McMaster University Adapt its Buildings for the Future

    McMaster University is using technology to better control and manage its legacy thermal systems and create smarter buildings. Carmichael Engineering Ltd., a Canadian systems integrator, worked closely with ABB Canada’s experts and its highly adaptable smart building platform, ABB Cylon, to improve energy efficiency, enhance user adaptability, and leverage innovative technologies in locations across campus. Read More…

  • FLIR’s Thermal Camera Technology: A Crucial Component in Industrial Settings

    FLIR’s Thermal Camera Technology: A Crucial Component in Industrial Settings

    Thermal imaging technologies like the ones by FLIR improve safety, operational efficiency, and cost savings in many automated and industrial applications. By capturing the infrared radiation emitted by an object or process, it identifies thermal anomalies that warrant further investigation by experts. Today, thermography is more sophisticated and accessible than ever, making is easy for… Read More…