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Mergers & Acquisitions Atlas Copco Acquires Edwards Vacuum

| Editor: Dominik Stephan

Consolidation on the compressor market: Atlas Copco of Sweden acquires English based vacuum technology specialist Edwards Vacuum. A definitive agreement in a transaction valued at up to approximately $1.6 billion, including the assumption of debt, has already been recently reached...

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(Picture: Atlas Copco Specialty Rental)

Crawley, West Sussex/United Kingdom – "This strategically and financially compelling transaction provides the opportunity for our stockholders to receive an attractive premium for their shares”, explained Jim Gentilcore, Chief Executive Officer of Edwards. Under the terms of the merger agreement, a subsidiary of Atlas Copco will acquire Edwards for a per-share consideration of up to US $ 10.50, which includes a fixed cash payment of US $ 9.25 at closing and an additional payment of up to US $ 1.25 per share post-closing. “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 added.

The merger could generate synergetic effects for both companies, as the two firms have a complementary businesses fit. Both companies share a similar strategic direction, with growth focused on technology leadership and customer service. 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.

The merger, which has been unanimously approved by the Boards of Directors of both companies, is subject to shareholder approval, antitrust clearance, and customary closing conditions.

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