Techtronic Industries Co. has agreed to purchase Atlas Copco AB's electric power tool and accessories business for $626.6 million. The announcement was made Aug. 30. Though the sale is subject to regulatory clearances and closing conditions, it is expected to close before the end of the year.

Atlas Copco's power tool line includes Milwaukee Electric Tool Corp. and Atlas Copco Electric Tools as well as other entities under the brand names Milwaukee and AEG.

With its U.S. headquarters in Anderson, S.C., TTI is a manufacturer and supplier of home improvement and floor care products. Its brands include Ryobi power tools, and the Homelite, Royal, Dirt Devil, Regina and VAX lines of tools and floor care appliances.

In a conference call discussing the sale, Robert Frietag, president of TTI's North American Hardware Group, praised "the superb engineering and manufacturing that comes along with Milwaukee [that] will further enhance our global ability…to grow into other products and categories."

Dan Perry, president of Milwaukee Tool, called the sale "an opportunity that will allow us to be number one in the world in a very short period of time. We are thrilled with the fact that we can have this opportunity to grow."

No layoffs or facility closings are anticipated, although Perry did say that "it's really premature to make comments on specifics at this point. We really haven't sat down strategically and talked about these issues."

But Jeff Dils, president of the Power Tool Division of TTI/North America, did add that "all the facilities we visited during our due diligence process were very impressive. That was one of the critical elements of our decision to purchase Milwaukee. And as we grow, those facilities will grow with us."

"Milwaukee is one of the most widely respected brands in the professional contractor market segment, and in Europe," said Horst Pudwill, chairman/CEO of TTI. "AEG brings an additional highly respected brand to our portfolio. This acquisition takes advantage of our marketing and distribution networks, and enhances our reach into the industrial/construction channel and the power tool accessory market."