Edwards Group Ltd. (EVAC) has agreed to be acquired by Atlas
Copco AB (ATCO-A.SK, ATLKY) for up to $1.2 billion, a deal that
will boost the vacuum pump maker's prospects for growth.
"The two companies share very similar strategic goals, strong
brands and leading market positions," Edwards Chief Executive Jim
Gentilcore said. "The Edwards brand and reputation will benefit
from the support, expertise and financial strength that Atlas Copco
will bring."
The deal is valued at up to about $1.6 billion, including the
assumption of debt.
Atlas Copco will pay up to $10.50 a share to buy Edwards,
representing a 24% premium to the company's Friday closing price.
The price includes a fixed cash payment of $9.25 at closing and an
additional payment of up to $1.25 a share post-closing, depending
on Edwards achieving certain milestones.
The two companies said Edwards--which makes vacuum products and
abatement systems--and Stockholm-based Atlas Copco--which makes
products like compressors, construction and mining equipment, power
tools and assembly systems--have complementary businesses.
Once the deal is completed, a new vacuum solutions division will
be formed within the Atlas Copco Compressor Technique business
area, with headquarters in Crawley, U.K.
Last month, Edwards reported its second-quarter profit surged
sharply as revenue climbed.
American depositary shares of Edwards closed Friday at $8.45,
while Class A ADS's of Atlas closed at $27.33. Both companies
stocks were inactive premarket.
Write to Saabira Chaudhuri at saabira.chaudhuri@wsj.com
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