Stockholm, Sweden-basedAtlas Copco last week agreed to acquire Quincy Compressor from EnPro Industries for approximately $190 million. The acquisition supports Atlas Copco’s profitable growth in North America and China, adding a strong brand and an extensive distributor network. The acquisition is subject to regulatory approvals.
Quincy Compressor had revenues in 2008 of $174 million, with an operating profit margin of about 15 percent, and has approximately 400 employees. It designs and manufactures reciprocating compressors, rotary screw compressors and vacuum pumps, primarily under the Quincy brand. Atlas Copco plans to further develop the Quincy brand independently, in line with the Atlas Copco Group’s established brand portfolio strategy.
“We look forward to working with Quincy Compressor and its strong distributor network,” said Stephan Kuhn, business area president, Atlas Copco Compressor Technique. “The strategic fit is very good and we will be able to better serve customers in the United States with an even more differentiated product portfolio. For Atlas Copco, this acquisition offers interesting synergies in both product design and supply chain management, while adding a strong brand for our continued growth.”
Quincy was founded in the 1920s and is headquartered in Bay Minette, Ala. It has manufacturing facilities in Bay Minette, Quincy, Ill., and in Kunshan, China. The products are sold through a network of independent distributors and agents. More than three quarters of the sales are in the United States.
The acquisition is being carried out by Fulcrum Acquisition LLC, a subsidiary of Atlas Copco North America LLC, and Atlas Copco (China) Investment Company Ltd., buying Quincy from EnPro’s subsidiary Coltec Industries. The company expects the transaction to close in the first quarter of 2010. Fulcrum will change its name to Quincy Compressor LLC once the acquisition is completed.
EnPro Industries is a leader in sealing products, metal polymer and filament wound bearings, diesel and dual-fuel engines, and other engineered products.