Atlas picks up 25% each in Focus, Prisma

Pune-based construction and mining tools company Atlas Copco (India), a subsidiary of Atlas Copco of Sweden, has acquired a 25 per cent stake each in two Hyderabad-based companies – Focus Rocbit and Prisma Roctools – in an all-cash deal for an undisclosed sum.The companies, which largely have the same shareholders, have combined annual revenues of around $10 million (Rs 40 crore) and manufacturing facilities in Cherlapalli on the outskirts of Hyderabad.

While Focus Rocbit is a manufacturer of bits for rotary drilling, Prisma Roctools makes bits and hammers for down-the-hole (DTH) drilling.Focus has a capacity to manufacture over 1,200 roller cone bits per month.

Atlas Copco has a manufacturing facility for rotary bits in the US. However, it has been excluded from certain markets. It plans to leverage these acquisitions to bridge this gap and target international markets, including China and Russia, where it is not selling rotary drilling bits and DTH hammers.

Focus and Prisma will operate as joint ventures of Atlas Copco Secoroc, a division within Atlas Copco’s construction and mining technique business area. Atlas Copco has an option to acquire the remaining stake in both the privately held firms within a year