ATS To Acquire Packaging Machine Provider Paxiom

Published: May 22, 2024

ATS To Acquire Packaging Machine Provider Paxiom

ATS Corporation, a leading automation solutions provider, today announced it has entered into a definitive agreement to acquire Paxiom Group, a provider of primary, secondary, and end-of-line packaging machines in the food and beverage, cannabis, and pharmaceutical industries.

“With a dynamic product mix and a growing global footprint, Paxiom will be a great addition to ATS,” said Andrew Hider, Chief Executive Officer of ATS Corporation. “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.”

With headquarters in Montreal, Quebec, the group includes its companies WeighPack Systems, EndFlex, Valtara and Kang-Di. With manufacturing facilities in: Montreal, Quebec; Miami, Florida; Schio, Italy and Shanghai, China as well as an integration center and showroom in Las Vegas, NV, Paxiom will join ATS’ Products and Food Technology business. Paxiom has been building leading automated packaging solutions for over 30 years, providing a vast product line that includes precision weigh filling, bagging, wrapping, labelling, conveyors, case forming, robotic case packing and end of line palletizing equipment that will complement ATS’ businesses CFT, Raytec, Marco, IWK, and NCC and allows ATS to offer complete packaging and end-of-line solutions. In its calendar year ended December 31, 2023, Paxiom generated revenues of approximately $67 million and an adjusted EBITDA margin1 above 19%, with the majority of revenues being generated in North America. Paxiom employs approximately 200 people and has a strong customer portfolio representing leading companies in multiple sectors.

“Paxiom’s differentiated solutions in filling, wrapping, sealing, labelling and palletizing across a range of industries will be a strong complement to our existing ATS portfolio,” added Jeremy Patten, President of ATS Products & Food Technology. “As we continue to expand our value proposition to customers across the markets we serve, the addition of Paxiom to ATS is highly complementary and will bring meaningful expansion to how we can support our customers.”

The purchase price represented an EV/EBITDA1 multiple accretive to ATS’ current trading multiple, however, specific financial terms of the transaction were not disclosed. The transaction is expected to close in the third calendar quarter of 2024, subject to customary closing conditions. ATS plans to fund the acquisition with cash and by drawing on its revolving credit facility.

1. Adjusted EBITDA is a non-IFRS measure; adjusted EBITDA margin is a non-IFRS ratio. 

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 solutions 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, transportation, food & beverage, consumer products, and energy. Founded in 1978, ATS employs over 7,000 people at more than 65 manufacturing facilities and over 85 offices in North America, Europe, Southeast Asia and Oceania. The Company’s common shares are traded on the Toronto Stock Exchange and the NYSE under the symbol ATS. Visit the Company’s website at