Compressed Air Best Practices - September 2008 - (Page 8) | 09/08 Compresse Air Industry FOOD PACKAGING & PROCESSING pressed | Gardner Denver Acquires CompAir Gardner Denver announced it has entered into separate share purchase agreements with the holders of 100% of the outstanding shares of CompAir, a leading global manufacturer of compressed air and gas solutions. The acquisition places a total enterprise value of the business at GBP $197.5 million (approximately $395 million), to be paid through a combination of cash and the assumption of existing CompAir debt. The transaction is expected to close in the fourth quarter of 2008. CompAir, headquartered in Redditch, U.K., operates through three business divisions: Industrial, Hydrovane and Reavell. The Industrial division manufactures an extensive range of products, including oil-injected and oil-free rotary screw compressors, piston compressors and portable rotary screw compressors. These products are used in oil and gas exploration, mining and construction, power plants and general industrial applications. The Hydrovane division is a leading manufacturer of rotary vane compressors used in OEM applications such as snow-making and mass transit, and general industrial applications. The third division, Reavell, is a leading manufacturer of highpressure reciprocating compressors producing air at delivery pressures in excess of 400 bar. Reavell’s compressors are used in applications such as compressed natural gas, industrial gases, breathing air and in naval, marine and defense market segments. “CompAir is an exciting strategic acquisition for Gardner Denver. The company has a reputation for high-quality, innovative products and best-in-class customer service, which strongly complements Gardner Denver’s existing operations,” said Barry L. Pennypacker, Gardner Denver’s President and Chief Executive Officer. “With more than three-quarters of CompAir’s sales in Europe and Asia, this transaction extends the geographic availability of Gardner Denver’s products and significantly enhances our channels of distribution to serve the global market. By blending the complementary product lines and geographical reach of CompAir and Gardner Denver, the combined business will be well positioned to take advantage of future growth opportunities for its products, services and people.” CompAir’s primary manufacturing facilities are located in Simmern, Germany; Ipswich and Redditch, U.K.; Ocala, Florida and Shanghai, China. CompAir’s audited financial statements for the twelve-month period ended March 31, 2008; report consolidated operating profit of GBP $16.1 million on revenues of GBP $265.1 million. “Over the past several years, CompAir has achieved numerous successes in product development and operational improvements, which has provided a solid platform for growth,” said Mr. Pennypacker. “We believe there is more opportunity to grow the profitability of this business post-transaction through lean enterprise techniques, low-cost country sourcing and capturing integration synergies.” For more information, visit www.gardnerdenver.com Atlas Copco Acquires Distributors Atlas Copco Compressors has purchased Gulf Atlantic Equipment Company (GAE), Florida, and Compressed Air Products (CAP), Georgia. Both companies have been successful Atlas Copco compressor distributors for many years. “We see great potential to grow the Atlas Copco Compressor business from the strong base both distributors have developed,” says Ronnie Leten, Business Area President, Atlas Copco Compressor Technique. “The acquisitions will clearly bring us closer to our customers in this region and improve our ability to offer them the support that they demand.” Both companies’ product offer consists mainly of stationary Atlas Copco compressors. The distributors will keep their names for an interim period and will become part of the southern region within Atlas Copco Compressors LLC, USA. The companies have a combined workforce of some 60 employees and are both privately owned. The parties have agreed not to disclose the purchase price. For further information, please contact: Ronnie Leten, Business Area President, Compressor Technique, tel: +32 (0)3 870 2938 or +32 (0)477 222 685 www.atlascopco.com 8 www.airbestpractices.com http://www.atlascopco.com http://www.gardnerdenver.com http://www.airbestpractices.com
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