TBJ – Lawsuit claims Atlas Copco owes $1.5 million in purchase of Raleigh company

File this one under the old maxim of a bird in the hand is worth two in the bush: Triangle businessman Robert M. Lee Sr. is suing Atlas Copco Tools & Assembly Systems LLC., claiming that the Swedish firm still owes him about $1.5 million from the sale of Lee’s former company.

The lawsuit, which was filed in the U.S. District Court for the Eastern District of North Carolina earlier this month, centers on Atlas’ 2008 acquisition of Raleigh-based Industrial Power Sales Inc. IPS was an industrial distributorship that sold Atlas products, such as power tools and assembly systems, across the Southeast for many years.

Atlas shelled out $7.1 million for the company’s assets on Aug. 8, 2008. But Lee claims in court documents that Atlas has failed to make additional required payments, including a 10 percent holdback related to potential adjustments in the purchase price. Lee alleges in court documents that Atlas also owes him additional money for other reasons, including disputed amounts for commissions, expenses and inventory – for a total of about $1.5 million.

“They just decided they didn’t want to pay it,” says Kieran Shanahan, an attorney who is representing Lee in the case.

Attempts to reach an Atlas spokesperson for comment were unsuccessful.

Shanahan adds that the parties are talking. “Hopefully, we’ll be able to work it out short of jury trial,” he says.

According to the lawsuit, IPS had 63 employees and $25 million in revenue when it was sold. The company was founded in 1979.

Atlas has more than 30,000 employees and manufacturing facilities in 20 countries.