Atlas Copco makes strategic acquisition to expand in low pressure equipment
Stockholm, Sweden, December 15, 2011: Atlas Copco North America LLC has agreed to acquire Houston Service Industries, Inc., a U.S. manufacturer of low-pressure blowers and vacuum pumps. The company has a strong domestic position in equipment for the wastewater treatment and industrial process sectors, offering sales synergies with Atlas Copco’s existing products in these market segments.
Houston Service Industries, which is privately owned, had revenues in the last 12 months of MUSD 37 (MSEK 240) and 123 employees. The company is a leading manufacturer of multistage centrifugal blowers, a traditional low pressure technology. It has recently introduced high-speed drive turbo blowers, which is an innovative and energy-efficient technology.
“This acquisition fits very well with our ambition to develop a globally leading position in the market for low pressure equipment, extending our offering to blowers of nearly all sizes,” says Stephan Kuhn, Business Area President, Atlas Copco Compressor Technique. “We see especially good growth opportunities in wastewater treatment, where there is great demand for more energy efficient products.”
Conventional municipal wastewater treatment plants use bacteria to break up waste, which requires large amounts of air blown into aeration tanks. The aeration blower system can account for up to 70 percent of the energy usage in a typical biological wastewater treatment plant.
Houston Service Industries will be part of the Oil-free Air division within the Compressor Technique business area. The company will continue operating under the HSI brand. See www.hsiblowers.com for more. The acquisition is expected to be closed during the first quarter of 2012. The parties have agreed not to disclose the purchase price.
Atlas Copco is an industrial group with world-leading positions in compressors, expanders and air treatment systems, construction and mining equipment, power tools and assembly systems. With innovative products and services, Atlas Copco delivers solutions for sustainable productivity. The company was founded in 1873, is based in Stockholm, Sweden, and has a global reach spanning more than 170 countries. In 2010, Atlas Copco had 33 000 employees and revenues of BSEK 70 (BEUR 7.3). Learn more at www.atlascopco.com .
Atlas Copco’s Compressor Technique business area provides industrial compressors, gas and process compressors and expanders, air and gas treatment equipment and air management systems. It has a global service network and offers specialty rental services. Compressor Technique innovates for sustainable productivity in the manufacturing, oil and gas, and process industries. Principal product development and manufacturing units are located in Belgium, Germany, the United States, China and India.
For further information please contact:
Stephan Kuhn, Business Area President, Compressor Technique
+32 (0)3 870 2938 or +32 (0)474 881 154
Daniel Frykholm, Media Relations Manager
+46 (0)8 743 8060 or +46 (0)70 865 8060