STOCKHOLM, Sweden, June 13, 2003 (PRIMEZONE) -- Atlas Copco (Other OTC:ATLKY): Atlas Copco South Africa (Pty) Ltd. has signed an agreement to acquire the businesses conducted by the two companies, Professional Diamond Drilling Equipment (Pty) Ltd and Mining Drilling Services (Pty) Ltd, Johannesburg, South Africa. The purchase price was not disclosed. The acquisition is subject to approval by regulatory authorities.
Professional Diamond Drilling Equipment Pty is a leading manufacturer of diamond drill bits with a direct sales organization for exploration drilling equipment. Mining Drilling Services Pty is a distribution company specializing in the supply of exploration drilling equipment to contractors and mines. Both companies serve the African market. The companies, combined, had annual revenues of approximately MSEK 90 (ME 10) in 2002 and 60 employees.
The acquisitions are in line with the strategy of the Atlas Copco Craelius division to expand the business in the mineral exploration field. "Through the acquisitions we will widen our geographical base in an expanding region and also improve our use-of-products offering, thus improving our customer support and services," says Patrik Nolaker, President of the Atlas Copco Craelius Division. "Combining our division's product portfolio with local manufacturing and strong local sales and distribution organizations gives us an opportunity to increase our presence with key customers in Southern Africa."
After the acquisition is completed, they will be joined into one unit called Atlas Copco Exploration Products Africa that will continue to operate as a stand-alone unit and serve its current customer base. The new unit will produce some exploration products and supply and service the complete range of Atlas Copco exploration products for the African continent.
Colin Rice, one of the owners of Professional Diamond Drilling Equipment Pty, will become the new General Manager of the company. Atlas Copco Exploration Products Africa will be part of the Atlas Copco Craelius division within the Construction and Mining Technique business area.
Atlas Copco Craelius is a division within the Atlas Copco Group developing, manufacturing and marketing equipment for exploration drilling and ground engineering applications. The head office is located in Marsta, Sweden, and manufacturing units are located in Sweden, Canada and China. The division employs approx. 300 people worldwide. More information is available on www.atlascopco.com/craelius.
Atlas Copco is an international industrial Group with its head office in Stockholm, Sweden. In 2002, the Group had revenues of close to SEK 48 billion (EUR 5.2 billion), with 98% of revenues outside Sweden, and about 26,000 employees. The Group produces and markets compressed air equipment and generators, construction and mining equipment, electric and pneumatic tools, and assembly systems and offers related service and equipment rental. The Atlas Copco Group includes famous brands such as Atlas Copco, RSC, Milwaukee Electric Tool, Chicago Pneumatic, and AEG Power Tools. More information can be found on the web site: www.atlascopco-group.com.
This information was brought to you by Waymaker http://www.waymaker.net
The following files are available for download:
http://www.waymaker.net/bitonline/2003/06/13/20030613BIT00460/wkr0001.doc
http://www.waymaker.net/bitonline/2003/06/13/20030613BIT00460/wkr0002.pdf