Sky News: Atlas Copco In Advanced Talks To Buy Edwards Group

(RTTNews) - Swedish engineering company Atlas Copco AB (ATLCY.PK, ATLCF.PK) is in advanced talks to buy UK-based industrial technology company Edwards Group Ltd. (EVAC) in a deal valued at nearly 1 billion pounds, Sky News reported Saturday. A deal is expected to be announced early this week.

Atlas Copco, which has a market capitalization of $30 billion, reportedly plans to offer about $9.20 per share for Edwards. The offer price represents a premium of about 9 percent to Edwards' closing stock price of $8.45 on Friday. Barclays plc (BCS, BARC.L) and Lazard Ltd. (LAZ), who are advising Edwards, are said to have recommended the company's board of directors to approve the bid.

Stockholm-based Atlas Copco's operations include making machines for the mining industry, air compressors and power tools.

Edwards, founded in 1919 in Crawley, makes higher-pressure vacuum pumps and related equipment that are vital to technology used for making electronic components. The company's products are integral to manufacturing processes for semiconductors, flat panel displays, LEDs and solar cells.

In 2011, Edwards tried to float on the London stock exchange, but dropped the attempt due to market volatility. The company later listed on the Nasdaq stock exchange in May 2012. The shares closed on Friday at $8.45, giving the company a market capitalization of $953.57 million.

Edwards' takeover by Atlas Copco will follow French energy management company's Schneider Electric S.A.'s (SBGSF.PK) recent deal to buy British engineering company Invensys Plc (ISYS.L) for 3.4 billion pounds.

ATLCY closed Friday's trading at $24.70, up $0.09 or 0.37 percent on a volume of 2,680 shares. EVAC closed Friday's trading at $8.45, up $0.10 or 1.20 percent on a volume of 7,288 shares.