ATS Corporation stock falls as CEO Hider departs for Baxter International

Published 07/07/2025, 16:02
ATS Corporation stock falls as CEO Hider departs for Baxter International

Investing.com - ATS Corporation (TSX:ATS) (NYSE:ATS) shares fell Monday after the company announced that CEO Andrew Hider will step down by the end of August to pursue a new leadership opportunity at Baxter International (NYSE:BAX). The announcement impacted the stock, which has shown significant volatility according to InvestingPro data, with shares currently trading at $29.67, giving the automation solutions provider a market capitalization of $2.91 billion.

Raymond (NSE:RYMD) James maintained its Outperform rating and C$48.00 price target on ATS following the news. The firm noted that Hider, who joined ATS in early 2017, was instrumental in implementing key strategic priorities including divesting non-core segments, improving margins, completing a U.S. IPO, and spearheading the company’s M&A strategy.

During Hider’s tenure, ATS completed over 20 acquisitions, with particular emphasis on growth within the Life Sciences segment. Recent transactions include Avidity Life Sciences (November 2023), Paxiom (July 2024), and Heidolph (September 2024).

CFO Ryan McLeod will assume the role of interim CEO while the board conducts a search for a permanent replacement. Raymond James indicated that while McLeod is familiar with the company’s M&A activities, the dual CEO/CFO mandate would be "extremely demanding on his time."

The company currently faces leverage concerns, with a ratio of 3.9x at the end of fiscal Q4. Expected proceeds from EV-related transactions in fiscal Q1 should reduce leverage by approximately 0.5x to around 3.4x, as the company works toward its target range of 2-3x.

In other recent news, Baxter International Inc. has announced the appointment of Andrew Hider as its new president and chief executive officer, effective by early September 2025. Hider will also join Baxter’s board of directors, succeeding Brent Shafer, who will transition to the role of independent chair. Hider is currently the CEO of ATS Corporation, where he has been credited with nearly doubling the company’s adjusted revenues over a five-year period. Meanwhile, ATS Corporation has confirmed that Hider will step down from his role as CEO by the end of August 2025. Ryan McLeod, who has been the Chief Financial Officer since 2020, will step in as interim CEO while ATS searches for a permanent replacement. The company noted that its financial outlook for the current fiscal quarter and year remains unchanged. ATS Chairman David McAusland acknowledged Hider’s leadership during a period of substantial growth, both organically and through acquisitions. Mike Martino, expected to become the new Board Chair, expressed gratitude for Hider’s contributions, stating that he has positioned ATS well for the future. These developments highlight significant leadership changes at both Baxter International and ATS Corporation.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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