British vacuum products business Edwards Group is now in the hands of a Swedish owner following a deal worth up to $1.6 billion.
Atlas Copco has acquired Edwards Group in a deal which is described by the two companies as a ‘complementary fit’.
West Sussex-headquartered Edwards manufactures vacuum products aimed at the production of components such as semiconductors, flat panel displays and LEDs.
Jim Gentilcore, CEO of Edwards, says the $1.6 million (£1 million) transaction is ‘strategically and financially compelling’ and provides shareholders with an attractive premium.
‘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,’ he says.
The extra payment Gentilcore refers to is worth $1.25 per share depending on Edwards’ achievement of 2013 revenue within the £587.5 million to £650 million range and EBITDA of between £113.9 million and £145 million.
Acquiring company Atlas Copco Group is an industrial group with a focus on compressors, construction and mining equipment.
Edwards Group is the latest UK business to move into foreign ownership following the acquisition of Invensys by Schneider Electric in July.
‘This transaction also delivers many benefits for Edwards’ customers and employees,’ Gentilcore adds.
‘The two companies share very similar strategic gaols, strong brands and leading market positions.’