April 19, 2000
Atlas Copco North America Inc. has signed an agreement to sell Atlas Copco Rotoflow Inc. to GE Power Systems, a leading supplier of energy products and services, headquartered in Schenectady, New York. The transaction is expected to close in May and is subject to customary governmental approvals. The selling price was not disclosed.
Atlas Copco Rotoflow is an engineered products company manufacturing radial inlet expanders specializing in applications in the hydrocarbon processing industry. It is part of the Applied Compressor & Expander Technique Division within the Compressor Technique Business Area. The company, located in Gardena, California, in the U.S., has 140 employees and sells its products globally. In 1999 revenues were around SEK 300 million.
"The Applied Compressor & Expander Technique Division participates in, among others, the large and diverse hydrocarbon processing and air separation industries. And Atlas Copco Rotoflow’s products have had limited synergies and development potential with the rest of the division. The broader based business of GE Power Systems and its portfolio of product and service offerings within the energy industry will offer better opportunities for Rotoflow in the future." said Bengt Kvarnbäck, Senior Executive Vice President Business Area Compressor Technique, while commenting on the divestment.
Atlas Copco will maintain its line of radial expanders manufactured by Atlas Copco Energas GmbH located in Cologne, Germany, also a company in the Applied Compressor & Expander Technique Division. This product line primarily addresses applications in the Air Separation industry.
Atlas Copco Applied Compressor and Expander Technique is a division within the Atlas Copco Group, an international industrial Group with its head office in Stockholm, Sweden. In 1999, the Group had revenues of SEK 36 billion, with 97 percent of revenues outside Sweden, and over 26,000 employees. Atlas Copco companies develop, manufacture, and market electric and pneumatic tools, compressed air equipment and generators, construction and mining equipment, assembly systems, and offer related service and equipment rental. More information is available on www.atlascopco.com.