Atlas Copco to acquire Italian compressor company

Stockholm, Sweden, July 13, 2006: Atlas Copco Italia S.p.A. has signed a contract to acquire the Industrial Division of the ABAC Group S.p.A.. It has a turnover of approximately BSEK 1.5 (MEUR 160) and some 650 employees. The estimated operating profit margin in 2005 was around 10%.

The preliminary purchase price is approximately BSEK 1.1 (MEUR 119.5). The completion date of the acquisition is dependent upon the required approvals from the relevant anti-trust authorities. The ABAC Group, headquartered in Turin, Italy, is a major manufacturer of piston compressors for the industrial market via the ABAC, BALMA and AGRE brands. It has a solid presence in the screw compressor market via the ALUP, ABAC and BALMA brands. The group has successfully established a presence in the distribution of compressors for small and medium sized industries and the automotive aftermarket. For more information visit www.abac.it. “The acquisition is in line with and supports our multi-brand strategy. Through the acquisition, the Atlas Copco Group will increase its market coverage, specifically in the piston compressor market for small and medium sized industries where our position today is weak,” says Ronnie Leten, Business Area President, Atlas Copco Compressor Technique. With effect from January 1, 2006, the ABAC Group was divided into an Industrial and a Consumer Division. The Consumer Division, led by the company Nu Air Compressors and Tools, will remain under the control of the current group. ABAC will become part of Atlas Copco Compressor Technique’s Industrial Air division. After the acquisition is completed, Atlas Copco will continue to distribute the products under the ABAC, ALUP, BALMA and AGRE brands.