ATSAF - ATS Automation Tooling Systems' Comecer Acquisition Is Expensive But Will Improve Its Growth Outlook
Investment Thesis
ATS Automation Tooling Systems (ATSAF) (TSX:ATA) (“ATS”) recently announced it will acquire Comecer, an Italian based manufacturer of aseptic processing and containment technologies. The acquisition allows ATS to enter this highly specialized market that would otherwise be very difficult for ATS to enter alone. However, the company may have paid a premium for this acquisition, as ATS does not expect the return on investment capital to reach double-digit until the fifth year. Nevertheless, we believe the acquisition will result in significant revenue synergies in the long term.
Source: Investor Presentation