Techtronic Industries Co. Ltd., the Hong Kong-based manufacturer of Ryobi power tools and Dirt Devil appliances, has completed its acquisition of Atlas Copco Group's electric tools business, including Milwaukee Electric Tool Corp., for U.S. $626.6 million.
The deal includes Milwaukee Electric Tool, producer of the Milwaukee-brand power tools and the Sawzall reciprocating saw, and Atlas Copco Electric Tools GmbH. As part of the transaction, Techtronic is assuming $86.2 million in pension obligations to 3,100 workers of the two units, according to a Bloomberg report.
Atlas Copco Electric Tools is comprised of AEG Electric Tools, a Winnenden, Germany, manufacturer Atlas acquired in 1991, and DreBo Werkzeugfabrik GmbH, a manufacturer of masonry drilling tools in Altshausen, Germany, acquired in April 2003.
The units had 2003 sales of $700 million and about 3,100 employees, with about 2,000 employed by Milwaukee Electric Tool.
Stockholm, Sweden-based industrial consortium Atlas Copco announced plans in May 2004 to sell off the electric tools manufacturing operations. The company said the electric tool business is profitable and holds significant market share, particularly in North America, but the business is far from Atlas Copco's desired position of being number one or two in its markets worldwide.
Techtronic's products include Ryobi power tools and outdoor power equipment sold under the Homelite and Ryobi brands. It also produces Royal, Dirt Devil, Regina, and Vax floor care appliances, and provides private-label products for home improvement retailers.
Techtronic, which has its North American headquarters in Anderson, S.C., reported 2003 sales had increased about 39 percent compared to about $1.7 billion in 2002. It has approximately 16,300 employees at manufacturing, research, and service operations in Asia, North America, Europe, Australia, and New Zealand. (Milwaukee Business Journal)
Back to Breaking News