Ingersoll-Rand Sells Drilling Solutions Unit to Atlas Copco

Ingersoll-Rand has sold its Drilling Solutions business unit to Atlas Copco AB, headquartered in Stockholm, Sweden, for approximately $225 million.

The transaction includes production facilities in Garland, Texas; Roanoke, Virginia; Yokohama, Japan; and Xuan Hua, China; and Ingersoll-Rand Equipment Stores in Knoxville and Nashville, Tennessee; and Clarks Summit, Pennsylvania. Also, the transaction includes Drilling Solutions assets held by Ingersoll-Rand (India) Limited, subject to approval by the shareholders of the Indian company, which is expected in the third quarter of 2004. The transaction does not include Ingersoll-Rand's France-based Montabert business unit, which manufactures hydraulic rock-breaking equipment.

"This divestiture has significant strategic and symbolic importance for our company," said Herbert L. Henkel, chairman, president and chief executive officer. "Strategically, it improves our ability to invest in opportunities that enhance our core product lines, recurring-revenue stream, and geographic reach.

"At the same time, we are clearly transforming our company's historic business profile and creating a new foundation to achieve growth and consistent earnings performance. We continue to benefit from market leading businesses and well-known brands, and we remain committed to developing innovative products and solutions for customers throughout the world."