Posted to News on 20th Aug 2013, 08:40
Atlas Copco acquires Edwards, expands into process vacuum market
Atlas Copco AB and Edwards Group Ltd. have entered into an agreement where Atlas Copco will acquire Edwards, a supplier of vacuum and abatement products for an amount of up to BSEK 10.6 (1.04 Billion). The company is headquartered in the United Kingdom and listed on the NASDAQ stock exchange in New York.
Ronnie Leten, President and CEO at Atlas Copco, says: "Edwards is a technology leader with a well-developed structure and solid customer relationships in industries we know well. It is a great fit for Atlas Copco. The vacuum solutions market is growing and has similar characteristics to our existing industrial businesses."
Edwards is a technology and market leader in sophisticated vacuum products and abatement products with more than 90 years' experience. The products and services are integral to manufacturing processes, such as for semiconductors and flat panel displays, and are used within an increasingly diverse range of industrial applications. The vacuum products market is estimated to be larger than BSEK 40 (3.9 Billion). Edwards has more than 3200 employees and is headquartered in Crawley, United Kingdom.
The acquisition of Edwards offers Atlas Copco an opportunity to expand into a growing business which serves industries that are well known to Atlas Copco. There are several synergies between vacuum and compressed air products in sales, service and technology development.
Ronnie Leten adds: "We recognise the strength Edwards has in its people and products as well as their excellence in technology and innovation. We are excited that this professional company will join our Group."
Edwards had revenues in 2012 of MSEK 6 400 (626 Million), of which more than half in Asia, with an adjusted EBITDA margin of 19.1 per cent. The reported operating margin was 10.6 per cent, including restructuring costs and amortisation of the sellers' purchase price adjustments, corresponding to about 4 percentage points of revenues.
The acquisition is an all-cash transaction utilising Atlas Copco's own existing funds. The transaction, which will be completed by way of a merger, is subject to customary closing conditions. The transaction is expected to close in the first quarter of 2014. Edwards will be part of Atlas Copco's new Vacuum Solutions division within the Compressor Technique business area. More information about Edwards can be found at www.edwardsvacuum.com, and about Atlas Copco at www.atlascopco.co.uk.
