Atlas Copco Buys Chinese Air Tools Maker

Atlas Copco AB, parent company of Chicago Pneumatic, on Monday acquired the assets of Chinese air tool manufacturer Qingdao Qianshao Precision Machinery. Terms of the transaction were not disclosed. As part of the acquisition, a new equity joint venture, CP Qianshao (Qingdao) Power Tools Ltd., has been formed. It will become part of Atlas Copco's Chicago Pneumatic division, within the Industrial Technique business area.

STOCKHOLM, Sweden — Atlas Copco AB, parent company of Chicago Pneumatic, on Monday acquired the assets of Chinese air tool manufacturer Qingdao Qianshao Precision Machinery. Terms of the transaction were not disclosed.

Qingdao Qianshao Precision Machinery, based in Qingdao, Shandong Province, is a leading producer of pneumatic tools for the industrial market as well as for the automotive aftermarket and the aerospace industry.

As part of the acquisition, a new equity joint venture, CP Qianshao (Qingdao) Power Tools Ltd., has been formed. Atlas Copco (China) Investment Co. will own 80 percent, and 20 percent will be owned by Qingdao Qianshao Precision Machinery. The joint venture is in line with Atlas Copco’s overall strategy to expand its business in Asia. It will become part of Atlas Copco’s Chicago Pneumatic division, within the Industrial Technique business area.

At the same time, Atlas Copco (China) Investment has formed a joint venture with Qingdao Qianshao Precision Machinery for power tools component manufacturing. Atlas Copco will own 25 percent and Qingdao Qianshao Precision Machinery 75 percent.

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