Ingersoll-Rand announced Feb. 19 it has agreed to sell its drilling solutions business unit to Atlas Copco AB for approximately $225 million. The companies expect the transaction, which is subject to government regulatory approvals, to be completed in the second quarter of 2004. The drilling solutions business dates to 1871 and manufactures drilling equipment and accessories for the construction, mining, quarrying and water-well drilling industries. Its 2003 revenues were approximately $300 million and the unit employs 950 people. The transaction includes production facilities in Texas, Virginia, Japan and China, and Ingersoll-Rand equipment stores in Nashville and Knoxville, Tenn., and Clarks Summit, Penn. Herbert Henkel, chairman, president and chief executive officer of Ingersoll-Rand, said the divesture is important strategically for the company because it improves the firm’s ability to invest in opportunities that enhance its core product line.
Ingersoll-Rand to sell drilling business to Atlas Copco
Feb 29, 2004