ATS to acquire biomedical research and life sciences water purification equipment provider Avidity Science
by CM staff
The transaction is expected to close in the fourth calendar quarter of 2023.
CAMBRIDGE — ATS Corporation an automation solutions provider, has entered into a definitive agreement to acquire Avidity Science, LLC, a growing designer and manufacturer of automated water purification solutions for biomedical and life science applications, for C$265 million, representing 11.2x Avidity’s projected calendar 2023 adjusted EBITDA or 10.3x Avidity’s projected calendar 2023 synergy-adjusted EBITDA.
The company expects US$1.5 million of cost and commercial synergies by year three, and US$2.6 million of cost and commercial synergies by year five. The acquisition is subject to customary post-closing adjustments.
“ATS works to support our customers in all areas of life sciences from research, to drug discovery, right through to commercial production,” said Andrew Hider, Chief Executive Officer of ATS Corporation. “Avidity’s capabilities provide researchers confidence in their data during key stages of drug discovery, development and testing through their water purification and delivery systems.”
Founded in 1969 and based in Waterford, Wisconsin, Avidity offers automated watering systems for critical environments where strict variable controls and integrity are crucial. It serves a diverse global customer base of pharmaceutical, biopharma, healthcare, government, and academic research facilities. In its financial year ended December 31, 2022, Avidity generated revenues of US$81.9 million, and a 20.4 per cent adjusted EBITDA margin. Approximately 40 per cent of Avidity’s revenue is reoccurring in nature, and includes the sale of consumables, SaaS, and aftermarket service and support. Avidity employs approximately 380 skilled professionals across six facilities in the United States, United Kingdom, China, and Japan.
“This acquisition will bolster our value proposition for both new and existing customers, in addition to aligning well with other accretive acquisitions we have made,” added Prakash ‘Cash’ Mahesh, Group Executive for ATS Life Sciences. “It also supports our ATS Life Sciences purpose of positively impacting the quality of life for billions of people around the world.”
The transaction is expected to close in the fourth calendar quarter of 2023, pending completion of customary regulatory filings. ATS plans to fund the acquisition with cash and by drawing on its revolving credit facility, which will result in a pro forma leverage of 2.5x net debt to the last twelve months adjusted EBITDA.
