Atlas Copco to acquire Ingersoll-Rand Drilling Solutions business
February 19, 2004
Stockholm, Sweden, February 19, 2004—Atlas Copco AB has today signed an agreement with Ingersoll-Rand Company Limited to acquire Ingersoll-Rand Drilling Solutions, a business within the Ingersoll-Rand Infrastructure sector. It has a turnover of approximately MUSD 300 (BSEK 2.2) and 950 employees. The purchase price is MUSD 225 (BSEK 1.7), to be paid in cash. The purchase is subject to various approvals.
Ingersoll-Rand Drilling Solutions is a manufacturer and distributor of drilling equipment and consumables for surface mining and construction, with its head office in Garland, Texas, USA, and production sites in several countries. The business has a leading position within these product areas in the USA and a strong position on many markets elsewhere. The anticipated acquisition will give Atlas Copco the products to expand in a complementary open pit mining market. It is a strategic move toward making Atlas Copco a leading supplier to the world’s largest construction and mining market, the United States. “Drilling Solutions is a perfect strategic fit, since Atlas Copco is a global market leader in underground drilling, while Ingersoll-Rand is strong in surface drilling, especially in the United States,” says Björn Rosengren, Senior Executive Vice President, Atlas Copco Construction and Mining Technique. “The acquisition will give Atlas Copco a more complete product range, stronger aftermarket organization and better geographical coverage, allowing us to meet the needs of the global mining and construction companies better. What’s more, Drilling Solutions employees have a great deal of valuable knowledge and experience, which complements that of our own people.” A new division will be created within the Construction and Mining Technique business area, with the name Atlas Copco Drilling Solutions. Initially, customers will continue to see the Ingersoll-Rand brand name on Drilling Solutions’ products. Atlas Copco’s Construction and Mining Technique develops, manufactures, and markets rock drills, rock drilling tools, tunneling and mining equipment, surface drilling equipment, construction tools, loading equipment, and geotechnical drilling equipment. The products are sold, rented and serviced for building and construction companies, large infrastructure projects, quarries, and mining companies around the world. The business area has its principal manufacturing plant in Sweden. In 2003, Construction and Mining Technique Business Area had revenues of MUSD 1 100 (BSEK 7.9). Through the anticipated acquisition of Ingersoll-Rand Drilling Solutions, and calculated on 2003 figures, the business area will have annual revenues of more than MUSD 1 400 (BSEK 10.1) and 6350 employees. CONTACT: Björn Rosengren, Senior Executive Vice President, Atlas Copco AB +46 (0)8 743 8314 or +46 (0) 70-417 85 02 Joanna Canton, Media Relations Manager, Atlas Copco AB +44 (0)1442 222312 or +44 7971 650111 Bob Fassl, General Manager, Atlas Copco Exploration Products (trade) +1 705 499 8666 The Atlas Copco Group is a global industrial group of companies headquartered in Stockholm, Sweden. In 2003, the Group had revenues of BSEK 44.6 (MUSD 6 100), with 98 percent of revenues outside Sweden, and close to 26 000 employees. Atlas Copco Group 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-group.com