Wednesday, March 16, 2005

TTI buys Milwaukee and AEGtools business

Hong Kong-based Techtronic In-dustries Co. Ltd. (TTI) has entered into a stock purchase agreement to acquire Atlas Copco AB’s electric power tool and accessories business.
That business is currently conducted through Milwaukee Electric Tool Corp.and Atlas Copco Electric Tools GmbH and certain other entities under the brand names “Milwaukee®” and “AEG®.”
The net purchase price was set at $626.6 million on a debt-free basis.
The transaction, which is subject to regulatory clearances and customary closing conditions, is expected to close prior to the end of 2004.
“With their 80-year histories, Milwaukee is one of the most widely respected brands in the professional contractor market segment and in Europe, AEG brings an additional highly respected brand to our portfolio,” said Horst J. Pudwill, chairman and CEO of TTI.
“This acquisition takes advantage of our marketing and distribution networks and enhances our reach into the industrial/construction channel and power tool accessory market.
”Under the acquisiton, Milwaukee, AEG, Drebo® and their employees would join TTI’s employee base and product line consisting of Ryobi power tools and outdoor products, Homelite consumer products and the Dirt Devil® line of cleaning equipment.
“The TTI Group is particularly excited about the superb engineering and man-ufacturing expertise represented at Milwaukee and AEG,” Pudwill said. “This acquired expertise will further enhance our global ability to expand our entire prod-uct portfolio and enables us to work with Milwaukee’s strong dealer base in the United States, an important distribution channel for the professional contractor. Additionally, Milwaukee, AEG and Drebo complement our Ryobi® brand of consumer power tools and accessories.
”Founded in 1985, TTI is a leading manufacturer and supplier of home im-provement and floor care products, employing more than 16,000 people world-wide. TTI’s global brand portfolio in-cludes Ryobi power tools, Homelite® and Ryobi outdoor power equipment, Royal, Dirt Devil, Regina® and VAX® floor care appliances.
Milwaukee is a leading producer and seller of heavy-duty portable electric tools and accessories. It designs and sells a substantial range of professional drills, Sawzalls®, circular saws, grinders and hammers as well as accessories designed for specific applications such as diamond drill rigs and Steel Hawg cutting systems.
Atlas Copco Electric Tools GmbH is located in Winnenden near Stuttgart/Germany and is responsible for developing, manufacturing and distribution of high-quality portable power tools under the AEG and Milwaukee brands and accessories. The products are marketed through a number of sales companies worldwide, with a main business focus on Europe, Asia, Australia, and South Africa and target mainly the professional market such as the construction industry and high-end user.


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