Automation solution provider ATS Corporation has entered into a definitive agreement to acquire Paxiom Group, a packaging machines supplier for various industries.
The specific financial terms of the transaction have not been disclosed.
Paxiom, headquartered in Montreal, Canada, offers an extensive product line that spans weigh filling, wrapping bagging, labelling, palletising equipment, and others.
The group’s portfolio of companies includes WeighPack Systems, EndFlex, Valtara, and Kang-Di.
It operates manufacturing facilities in Montreal, Miami in the US, Schio in Italy, and Shanghai in China.
Paxiom also runs an integration centre in Las Vegas, Nevada, US.
Following the acquisition, Paxiom will be integrated into ATS’ Products and Food Technology segment.
The integration will complement existing ATS businesses such as CFT, Marco, IWK, and NCC.
For the year ending 31 December 2023, Paxiom reported revenues of approximately $67m, the majority of which came from the North American market.
It also generated an adjusted earnings before interest, taxes, depreciation, and amortisation margin above 19%.
Paxiom employs approximately 200 individuals, serving companies across multiple sectors.
ATS CEO Andrew Hider said: “With a dynamic product mix and a growing global footprint, Paxiom will be a great addition to ATS.
“As we seek to expand our presence in regulated markets, such as food and beverage and life sciences, the strong reputation and sophisticated offerings that Paxiom brings to market will provide both organic and synergistic opportunities for growth with an accretive margin profile.”
The transaction is subject to standard closing conditions and is anticipated to be finalised in the third quarter of 2024.
ATS plans to finance the acquisition through cash reserves and by utilising its revolving credit facility.
