Techtronic Industries (TTI) announced on August 30 that it will acquire the electric power tool and accessories business of Atlas Copco, which includes the Milwaukee Electric Tool, Atlas Copco Electric Tools GmbH (AEG), and Drebo carbide drill bits brands, for $626.6 million on a debt-free basis.

"The TTI Group is particularly excited about the superb engineering and manufacturing expertise represented at Milwaukee and AEG," said Horst J. Pudwill, TTI chairman and CEO, in the announcement. "This acquired expertise will further enhance our global ability to expand our entire product portfolio and enables us to work with Milwaukee's strong dealer base in the U.S., an important distribution channel for the professional contractor."

According Bob Freitag, president of TTI's North American Hardware Group, the company has no plans to change Milwaukee's brand heritage or strategy and will continue to develop tools under the brand name. By combining the two companies' engineering, development, and manufacturing expertise, Freitag says, the company and brands will become more effective.

For the Milwaukee brand, two areas in particular that TTI will look to expand and develop are cordless tools and benchtop tools.

Freitag says that all of Milwaukee's warranties and existing products will be maintained under the original brand umbrella, and the brand will continue to expand with premium-level products for pros.
-- Katy Tomasulo