04:52 PM EDT, 05/15/2024 (MT Newswires) -- ATS Corp ( ATS ) on Wednesday said it agreed to acquire Paxiom Group, which makes packaging machines for the food and beverage, cannabis, and pharmaceutical industries, for an undisclosed price.

The automation company said buying Paxiom will support its push into regulated markets.

"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," chief executive Andrew Hider said in a release.

Paxiom had 2023 revenue of about C$67 million and an adjusted EBITDA margin above 19%. It employs around 200, and has "customers in has a strong customer portfolio representing leading companies in multiple sectors".

ATS plans to fund the acquisition with cash and by drawing on its revolving credit facility.

ATS shares closed down C$0.55 to C$44.65 on the Toronto Stock Exchange.