Home >Atlas Copco to buy Edwards for £1 billion

Atlas Copco to buy Edwards for £1 billion

20 August 2013

Atlas Copco AB and Edwards Group have entered into an agreement where Atlas Copco will acquire Edwards, a global supplier of vacuum and abatement solutions for up to £1 billion.

The company is headquartered in Crawley, United Kingdom and listed on the NASDAQ stock exchange in New York.

"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,” said Ronnie Leten, President and CEO at Atlas Copco. "The vacuum solutions market is growing and has similar characteristics to our existing industrial businesses.”

Edwards has more than 90 years of experience in vacuum products and abatement solutions. 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 solutions market is estimated to be worth around £4 billion. Edwards has more than 3,200 employees.

Under the terms of the agreement, a subsidiary of Atlas Copco will acquire Edwards for a per-share consideration of up to  $10.50, which includes a fixed cash payment of  $9.25 at closing and an additional payment of up to  $1.25 per share post-closing, depending on Edwards' achievement of 2013 revenue within the range of £587.5 million to £650 million and achievement of a related Adjusted EBITDA target within the range of £113.9 million to £145 million. The transaction is expected to close in the first quarter of 2014.

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 solutions in sales, service and technology development.

Upon completion of the transaction, a new Vacuum Solutions Division will be formed within the Atlas Copco Compressor Technique business area, with headquarters in  Crawley, UK.

Jim Gentilcore
, Chief Executive Officer of Edwards, said: "This strategically and financially compelling transaction provides the opportunity for our stockholders to receive an attractive premium for their shares. On top of the cash payment at closing, analyst consensus for the full year and our strong start to the third quarter leads us to believe it is realistic for us to achieve the results that would deliver an additional cash payment towards the upper end of the range to our shareholders."

Gentilcore continued: "This transaction also delivers many benefits for Edwards' customers and employees. The two companies share very similar strategic goals, strong brands and leading market positions. The Edwards brand and reputation will benefit from the support, expertise and financial strength that Atlas Copco will bring."