Sweden-based Atlas Copco announced its plans to acquire Edwards Group. The deal, worth up to USD 1.6 billion, is set for completion in the first quarter. Atlas Copco is an engineering firm, while Edwards Group is a London-based industrial technology company. The acquisition would help the Swedish firm counterbalance the volatility of its mining unit.
Edwards is a leading manufacturer of vacuum pumps by chemical and pharmaceutical firms. For 2012, it posted revenues of GBP 595 million. Atlas said it would buy Edwards at a 24% premium of USD 10.50 per share, including its net debt. Initially, stakeholders of Atlas would get USD 9.25 per share. After the 2013 income statement of Edwards gets finalized, shareholders would receive an additional payment of up to USD 1.25.
Atlas Copco CEO Ronnie Leten said the acquisition of Edwards is a great fit for the company. "Edwards is a technology leader with a well-developed structure and solid customer relationships in industries we know well," he explained.
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