Ingersoll-Rand has agreed to sell its Drilling Solutions business unit to Atlas Copco AB, headquartered in Stockholm, Sweden, for approximately $225 million. The transaction, which is expected to be completed in the second quarter of 2004, is subject to government regulatory approvals.

The Drilling Solutions business, which dates to Ingersoll-Rand’s origins in 1871, manufactures drilling equipment and accessories for the worldwide construction, mining, quarrying, and water-well drilling industries. It had 2003 revenues of approximately $300 million and employs approximately 950 people.

The transaction will include production facilities in Garland, TX; Roanoke, VA; Yokohama, Japan; and Xuan Hua, China; and Ingersoll-Rand Equipment Stores in Knoxville and Nashville, TN; and Clarks Summit, PA. The transaction does not include Ingersoll-Rand’s Montabert business unit, which manufactures hydraulic rock-breaking equipment.

"This divestiture improves our ability to invest in opportunities that enhance our core product lines and geographic reach, particularly in the growth markets of security and safety, climate control, industrial and energy solutions, compact equipment and road development," said Herbert L. Henkel, chairman, president and CEO of Ingersoll-Rand.

"At the same time," Henkel said, "we are clearly transforming our company’s historic business profile. The Drilling Solutions business has been a valued contributor to Ingersoll-Rand’s success."

The acquisition will give Atlas Copco the products to expand in a complementary open pit mining market.

"Drilling Solutions is a perfect strategic fit, since Atlas Copco is a global market leader in underground drilling, while Ingersoll-Rand is strong in surface drilling, especially in the United States," said Björn Rosengren, senior executive vice president, Atlas Copco Construction and Mining Technique. "The acquisition will give Atlas Copco a more complete product range, stronger aftermarket organization and better geographical coverage, allowing us to meet the needs of the global mining and construction companies better."

The new division will be called Atlas Copco Drilling Solutions, although initially, customers will continue to see the Ingersoll-Rand brand on Drilling Solutions’ products.

Robert Fassl has been appointed president of new Atlas Copco Drilling Solutions division. Fassl joined the Atlas Copco Group in 1982. During his career with Atlas Copco, he has held a variety of positions, including general manager, service manager, supply manager, production and purchasing manager, in North America, Sweden and Great Britain.

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