Atlas Copco acquires stake in Indian drilling companies

Atlas Copco (India) has agreement to acquire a 25% stake in Focus Rocbit and Prisma Roctools in India, subject to approval from the relevant authorities, for an undisclosed sum.

Commenting on the proposed deal, Björn Rosengren, business area president, construction and mining technique, said, "The acquisitions add a competitive range of products for customers in India and selected markets. They will also allow us to further develop and grow our rock drilling business in order to benefit from the current growth in the mining, construction and water well sectors"

The businesses will operate as joint ventures within Atlas Copco's Secoroc division. Atlas Copco has an option to acquire the remaining shares in both companies.

Focus Rocbit manufactures bits for rotary drilling. Prisma Roctools makes bits and hammers for down-the-hole (DTH) drilling. The privately-owned companies, which largely have the same shareholders, have combined annual revenues of about SEK 65 million (US$ 10 milion) and 114 employees.

Its sales are mainly in India, Australia, South Africa and the United States. The head offices and manufacturing facilities are located in Hyderabad, India.