Includes full exercise of over-allotment
option
CAMBRIDGE, ON, May 30, 2023
/CNW/ - ATS Corporation (TSX: ATS) (NYSE: ATS) ("ATS" or the
"Company"), an industry-leading automation solutions provider,
today announced the closing of its previously-announced public
offering of the Company's Common Shares ("Common Shares") in
the United States and Canada, representing ATS' initial public
offering in the United States and
listing of the Common Shares on the New York Stock Exchange. A
total of 6,900,000 Common Shares were sold by the Company,
including 900,000 Common Shares following the exercise in full by
the underwriters of their over-allotment option, at a price of
US$41 per share, for gross proceeds
to the Company of US$282.9
million.
The offering was conducted through a syndicate of underwriters
led by Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC,
as joint active bookrunners. TD Securities Inc. and Scotia Capital
(USA) Inc. also acted as
bookrunners in connection with the offering. National Bank of
Canada Financial, Inc., Cormark Securities Inc., Stifel Nicolaus
Canada Inc., Commerz Markets LLC, Raymond James Ltd., RBC Capital
Markets, LLC and UniCredit Capital Markets LLC acted as
co-managers.
ATS expects that the net proceeds of the offering will be used
for strategic opportunities, including acquisitions, as well as
working capital requirements and general corporate purposes.
Consistent with ATS' value creation strategy, ATS may execute on
strategic opportunities, including disciplined acquisitions, if and
when such opportunities arise, that drive the creation of long-term
sustainable shareholder value. Pending those strategic
opportunities, ATS expects to use the net proceeds to pay down
amounts drawn on its C$750.0 million
revolving senior secured line of credit. However, management of the
Company will have discretion with respect to the actual use of the
net proceeds of the offering.
No securities regulatory authority has either approved or
disapproved the contents of this press release. This press release
shall not constitute an offer to sell or the solicitation of an
offer to buy nor shall there be any sale of the Common Shares in
any jurisdiction in which such offer, solicitation or sale would be
unlawful prior to the registration or qualification under the
securities laws of any such jurisdiction.
About ATS Corporation
ATS Corporation 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
services 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 6,500 people at more
than 60 manufacturing facilities and over 80 offices in
North America, Europe, Asia
and Oceania. The Company's common shares are traded on the Toronto
Stock Exchange and the New York Stock Exchange under the symbol
ATS.
Cautionary Statement Regarding
Forward-Looking Statements
This press release contains certain statements that constitute
forward-looking information and forward-looking statements within
the meaning of applicable Canadian and U.S. securities laws
("forward-looking statements"). Forward-looking statements include
all information 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, the Company's expected use of the net proceeds
of the offering; the value creation strategy; disciplined
acquisitions; and the potential impact of strategic opportunities
on shareholder value. Forward-looking statements are necessarily
based on a number of estimates and assumptions regarding, among
other things, general economic and political conditions and the
ability of ATS to execute on its business objectives.
Forward-looking statements are inherently subject to significant
uncertainties, risks and other factors that could cause the actual
results, performance or achievements of ATS, or developments in
ATS' business or in its industry to differ materially from those
discussed in the forward-looking statements. Important factors that
could cause actual results to differ materially from expectations
include but are not limited to, the volatility of the market and
price of Common Shares; dilution of Common Shares from future
offerings; the Company's discretion in the use of proceeds of the
Offering; the discretion of the Company to pay dividends; the costs
of becoming a U.S. public company; the Company's foreign private
issuer status; the difference in Canadian and United States corporate and securities laws
various strategic and market opportunities for ATS; that the market
opportunities ATS anticipates do not materialize or that ATS is
unable to exploit such opportunities; expanding in emerging
markets; the 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; interest rate changes; foreign currency and
exchange risk; the relative strength of the Canadian dollar; risks
related to customer concentration; risks related to a recession,
slowdown, and/or sustained downturn in the economy; 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; the
emergence of new infectious diseases and pandemics, including the
potential resurgence of COVID-19 and/or new strains of COVID-19 and
collateral consequences thereof, including the disruption of
economic activity, volatility in capital and credit markets, and
legislative and regulatory responses; the effect of events
involving limited liquidity, defaults, non-performance or other
adverse developments that affect financial institutions,
transaction counterparties, or other companies in the financial
services industry generally, or concerns or rumours about any
events of these kinds or other similar risks, that have in the past
and may in the future lead to market-wide liquidity problems;
energy shortages and global prices increases; success and impact of
the initiatives that ATS is undertaking; failure of the ATS
Business Model to realize upon its objectives; the inability to
successfully expand organically or through acquisition due to an
inability to grow expertise, personnel, and/or facilities at
required rates or to identify, negotiate and conclude one or more
acquisitions, or to raise, through debt or equity, or otherwise
have available, required capital; ATS is unable to expand in
emerging markets, or is delayed in relation thereto, due to any
number of reasons, including inability to effectively execute
organic or inorganic expansion plans, focus on other business
priorities, or local government regulations or delays; the failure
to realize the savings expected from reorganization activity or
within the expected timelines; risk that the ultimate outcome of
lawsuits, claims, and contingencies give rise to material
liabilities for which no provisions have been recorded; that ATS is
not successful in growing its product portfolio and/or service
offering or that expected benefits are not realized; that
acquisitions made are not integrated as quickly or effectively as
planned or expected and, as a result, anticipated benefits and
synergies are not realized; and other risks and uncertainties
detailed from time to time in ATS' filings with securities
regulators, including, without limitation the risk factors
described in the prospectus supplement, including the documents
incorporated by reference therein (including ATS' annual
information form for the fiscal year ended March 31, 2023), and the registration statement
in respect of the offering, which are available on www.sedar.com
and the U.S. Securities and Exchange Commission's EDGAR website at
www.sec.gov. ATS has attempted to identify important factors that
could cause actual results, performance or achievements to vary
from those current expectations or estimates expressed or implied
by the forward-looking statements. However, there may be other
factors that cause results, performance or achievements not to be
as expected or estimated and that could cause actual results,
performance or achievements to differ materially from current
expectations. These forward-looking statements are only current as
of the date of this press release. Although ATS believes that the
expectations reflected in such forward-looking statements are
reasonable, such statements involve risks and uncertainties, and
undue reliance should not be placed on such statements. ATS does
not undertake any obligation to update forward-looking statements
contained herein other than as required by law.
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SOURCE ATS Corporation