Atlas Copco to acquire I-R drilling business
STOCKHOLM-based Atlas Copco AB have signed an agreement with Ingersoll-Rand Co. Ltd to acquire Ingersoll-Rand Drilling Solutions for a cash consideration of US$225 million, subject to various approvals.
With head offices in Garland, Texas, and production sites in several countries, Ingersoll-Rand Drilling Solutions manufacture and distribute drilling equipment and consumables for surface mining and construction. They employ 950 staff and have an annual turnover of around US$300 million.
If approved, the acquisition will give underground drilling equipment specialists Atlas Copco the products to expand in the complementary surface-mining market, and will mark a strategic move towards making the company a leading supplier to the US construction and mining markets.
A new division will be created within Atlas Copco’s Construction and Mining Techniques business area, with the name Atlas Copco Drilling Solutions.
‘Drilling Solutions are a perfect strategic fit, as Atlas Copco are a global market leader in underground drilling, while Ingersoll-Rand are strong in surface drilling, especially in the United States,’ said Björn Rosengren, senior executive vice-president of 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 global mining and construction companies better.’
Following the anticipated acquisition, Atlas Copco’s Construction and Mining Technique business area will have some 6,350 employees and annual revenues in excess of US$1,400 million.
