ATS Corporation has agreed to acquire Paxiom Group, a supplier of packaging machines for various industries. The financial terms of the transaction have not been disclosed.
Paxiom, headquartered in Montreal, Canada, offers a broad product line that includes weighing, filling, wrapping, bagging, labeling, and palletizing equipment. The group’s portfolio of companies includes WeighPack Systems, EndFlex, Valtara, and Kang-Di. It operates manufacturing facilities in Montreal, Miami, Schio in Italy, and Shanghai, China, and runs an integration center in Las Vegas.
After the acquisition, Paxiom will be integrated into ATS’ Products and Food Technology segment, complementing existing ATS businesses such as CFT, Marco, IWK, and NCC. For the year ending December 31, 2023, Paxiom reported revenues of approximately $67 million, with most of its revenue generated from the North American market. The company also achieved an adjusted earnings before interest, taxes, depreciation, and amortization margin above 19%. Paxiom employs approximately 200 individuals and serves companies across multiple sectors.
“With a dynamic product mix and a growing global footprint, Paxiom will be a great addition to ATS,” said ATS CEO Andrew Hider. “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 finalized in the third quarter of 2024. ATS plans to finance the acquisition through cash reserves and its revolving credit facility.
ATS Corporation is a global provider of automation solutions, serving a variety of industries including life sciences, food and beverage, and consumer products. Paxiom Group is a packaging machinery supplier, offering a wide range of equipment and solutions for diverse sectors.
