Atlas Copco has agreed to acquire the vacuum segment of Oerlikon. Founded in 1850, Oerlikon is based in Switzerland and listed on the SIX Swiss Exchange. The vacuum business, Oerlikon Leybold Vacuum, is headquartered in Cologne, Germany, and has about 1600 employees.

 

　　“Leybold will strengthen our technology platform for superior vacuum solutions,” said Nico Delvaux, President of Atlas Copco’s Compressor Technique business area. “We welcome a very knowledgeable workforce with a long history.”

 

　　Oerlikon Leybold Vacuum’s vacuum solutions are used to create clean, particle-free environments for such applications as automotive, metallurgy, coating of microchips, and the manufacturing of analytical instruments.

 

　　The acquisition of Oerlikon Leybold Vacuum follows Atlas Copco’s acquisition in 2014 of Edwards Group Ltd., which was the Group’s first major step into the vacuum solutions business.

 

　　The acquisition is an all-cash transaction utilizing Atlas Copco’s existing funds, and is subject to regulatory approvals. The acquisition is estimated to be completed in the first half of 2016. The acquired business will become part of Atlas Copco’s Vacuum Solutions division in the Compressor Technique business area.

 

　　Oerlikon Continues to Streamline its Portfolio, Agrees to Sell Vacuum Segment to Atlas Copco

 

　　Oerlikon announced that it has signed an agreement to sell its Leybold Vacuum business to Atlas Copco. The transaction is based on an enterprise value of CHF 525 million and is expected to close by middle of the year 2016.

 

　　Oerlikon advances its strategic agenda and continues to focus on streamlining its portfolio with the objective of further developing the company’s Best-in-Class businesses. The divestment of its Vacuum Segment to Atlas Copco marks the thirteenth strategic transaction for the Group since 2010. It will allow the Group to further allocate resources and management attention to its strategic growth areas.

 

　　Oerlikon CEO Dr. Brice Koch said: “This is another important milestone in our strategic effort toward focusing our businesses on attractive core growth markets in the fields of energy, mobility and urbanization. We intend to use the proceeds to invest in sustainable profitable growth within our core competencies.”

 

　　Atlas Copco is the ideal owner to unfold the full potential of Oerlikon Leybold Vacuum, as it has a strong position and wide expertise in the vacuum and compressor sector. The enterprise value for Oerlikon Leybold Vacuum is CHF 525 million. In 2014, the Segment generated sales of CHF 390 million, and, as of June 30, 2015, has 1646 employees worldwide. The transaction provides Oerlikon with a stronger position to invest in its leading businesses funding innovation, operational excellence as well as organic and inorganic growth opportunities.

 

　　Process and Guidance

 

　　The transaction is expected to close by middle of the year 2016, subject to regulatory merger approvals in a number of countries and the standard closing conditions.

 

　　Oerlikon will report the Vacuum Segment under “Discontinued Operations” in the 2015 full-year financial statements and will restate the 2014 accounts accordingly. Based on preliminary restated 2014 full-year Group figures for order intake (CHF 2 647 million), sales (CHF 2 825 million) and EBITDA margin (16.8 %).

 

　　Oerlikon confirms for its continuing operations for the financial year 2015 at constant exchange rates the guidance provided on October 27, 2015:

 

　　·Order intake to increase by low single digits

 

　　·Sales to be at prior-year level

 

　　·EBITDA margin to be sustained at prior-year level