MILWAUKEE — Techtronic Industries Co. Ltd. announced that it entered into a stock purchase agreement to buy Atlas Copco AB's electric power tool and accessories business, currently conducted through Milwaukee Electric Tool Corp. and Atlas Copco Electric Tools GmbH. The firms sell tools under the brand names Milwaukee and AEG. TTI is paying $ 626.6 million on a debt-free basis.

The purchase combines Milwaukee and AEG with TTI's Ryobi brand. The company also owns consumer brands such as HomeLite and Dirt Devil. They will face off against the other global power toolmaker Black & Decker that also owns Porter-Cable, Delta, DeVilbiss Air Power, Oldham Saw, and Flex brands.

Horst J. Pudwill, chairman and CEO of TTI said, "We are pleased to add the Milwaukee and AEG brands of power tools and DreBo carbide drill bits to our growing family of global brands. With their 80-year histories, Milwaukee is one of the most widely respected brands in the professional contractor market segment and in Europe, 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 power tool accessory market. The TTI Group is confident in our ability to continue generating strong double-digit returns for our shareholders."

During a conference call, Bob Freitag, president of TTI North American Hardware Group, said Milwaukee Electric has such good manufacturing capability that it will enhance the company's manufacturing expertise worldwide. He said the firm was particularly excited to be able to work with Milwaukee's dealers and its professional contractor customers.

"I've been with this company for 32 years and frankly I have not seen this kind of opportunity for Milwaukee Electric Tool to be number one in the world in a short period of time," said Dan Perry, president of Milwaukee. Perry said the company would be able to leverage the strengths of all of its brands to become the world leader in power tools.

Founded in 1985, TTI is a manufacturer and supplier of home improvement and floor care products, employing more than 16,000 people. TTI's portfolio includes Ryobi, Homelite and Ryobi outdoor power equipment, Royal, Dirt Devil, Regina and VAX floor care appliances. Although the company is based in Hong Kong, 80% of its business is in North America.

Milwaukee produces and sells heavy-duty portable electric tools and accessories, including professional drills, Sawzalls, circular saws, grinders and hammers as well as accessories designed for specific applications such as diamond drill rigs and Steel Hawg cutting systems.