EnPro to sell Quincy Compressor for $190M in cash

AP News
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Posted: Dec 18, 2009 11:02 AM

EnPro Industries, a supplier of sealing products, bearings and other items, on Friday said it will sell its Quincy Compressor to air compressor company Atlas Copco Group for about $190 million in cash.

The action supports the company's efforts to expand its core businesses through internal growth initiatives and acquisitions.

"The proceeds from this transaction will enable EnPro to grow in core areas where we hold stronger and more competitive market positions and have a larger set of viable options," said EnPro CEO, Steve Macadam.

EnPro, which has headquarters in Charlotte, N.C., estimates a pre-tax gain of about $140 million in the first quarter of 2010.

The Quincy Compressor designs and makes reciprocating compressors, rotary screw compressors and vacuum pumps. The business has about 400 employees. Quincy was founded in the 1920s and is headquartered in Bay Minette, Alabama. It has manufacturing facilities in Bay Minette, Quincy, Illinois, and in Kunshan, China.

"For Atlas Copco, this acquisition offers interesting synergies in both product design and supply chain management, while adding a strong brand for our continued growth," said Stephan Kuhn, business area president at Atlas Copco Compressor Technique.

The deal is expected to close in the first quarter of 2010.

Shares of EnPro rose $1, or 4.3 percent, to $24.53 in morning trading.