mynth
12/2021

SP INDUSTRIES acquired by ATS CORPORATION

UNITED STATES Industrial Equipment / Special Machinery / Lab & Scientific Equipment EV $300–700M

Context

ATS Automation has finalized the acquisition of SP Industries from Harbour Group, a maneuver designed to fundamentally expand the group's capabilities in the pharmaceutical and life sciences sectors. The strategic rationale for this transaction centers on a "portfolio-expansion" play, merging the target's industry-leading aseptic and non-aseptic lyophilization technology with the group’s established global leadership in automated manufacturing solutions. This fusion effectively creates a specialized powerhouse in the bioprocessing equipment arena, providing the organization with the high-precision hardware required to address the increasing complexity of drug development and fill-finish operations.

SP INDUSTRIES, which reported an EBITDA margin of [members only] in 2021, is valued in this transaction at an EV/EBITDA multiple of 15x–25x, representing a premium to the average currently observed in the Industry & Manufacturing sector (11.7x).

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Target

SP Industries operates as a premier technology organization dedicated to the design and manufacture of high-grade biopharmaceutical processing equipment and laboratory apparatus. The entity’s business model is centered on a proprietary framework of lyophilization and aseptic fill-finish solutions, which are mission-critical for the stabilization and packaging of temperature-sensitive biologics and vaccines. Its value proposition is anchored in technical operational depth, providing a comprehensive portfolio that spans from research-scale freeze dryers to large-capacity commercial production systems. Strategically, the firm focuses on the entire pharmaceutical drug development lifecycle, leveraging a strong recurring revenue stream through its specialized labware and glassware business. By maintaining a specialized focus on standardized, repeatable results in sterile environments, the organization ensures a vital role in the structural efficiency of pharmaceutical manufacturing. The entity prioritizes technical innovation and industrialized quality standards to facilitate the structural advancement of therapeutic production worldwide.

Ent. Value

$300–700M

Equity Value

[members only]

Multiples

EV / Revenue

1x–3x

EV / EBITDA

15x–25x

EV / EBIT

[members only]

Historical Financials (USD)

Year
Rev
EBITDA
EBIT
2021
$100–200M
$10–30M
[members only]
2020
$100–200M
$10–30M
[members only]

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REFERENCES

Valuation range: EV $300–700M

Revenue range: $100–200M

EBITDA range: $10–30M

EV/Revenue range: 1x - 3x

EV/EBITDA range: 15x - 25x

Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of SP INDUSTRIES by ATS CORPORATION are reserved for mynth community members. Register for free to unlock full data.

Authors: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.

Target: sp industries