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HONG KONG - Techtronic Industries (TTI), the rising power tool and outdoor power equipment manufacturer based here, has added another strong pro offering to its arsenal. TTI has entered into an agreement to acquire Atlas Copco Group's electric tool business, which includes Atlas Copco Electric Tools GmbH of Germany and the Milwaukee Electric Tool business in the United States. The cash deal, announced Aug. 30, is worth nearly $626.6 million and is expected to close by year's end. DreBo carbite drill bits are also included in the acquisition.
For the past year, rumors have circulated that Stockholm, Sweden-based Atlas had put Milwaukee and AEG on the blocks. In a statement, Atlas said Techtronic was the successful bidder among "several companies that were interested in acquiring" the business. In 2003, the business had revenues of $700 million.
This acquisition now gives TTI an even stronger grip on the pro tool market. TTI already produces Home Depot's exclusive line of Ridgid professional power tools and compressors.
"With their 80-year histories, Milwaukee is one of the most widely respected brands in the professional contractor market segment; and in Europe,...