NEW YORK (Bloomberg) -- Atlas Copco AB, the second-largest building-equipment rental company in North America, agreed last week to buy a drilling-machine business from Ingersoll-Rand Co. for $225 million in cash to help tap growing orders from mining clients.

Drilling Solutions, based in Garland, Texas, will be folded into Atlas Copco's mining division, increasing its number of employees to 6,350 with sales of more than $1.4 billion, said Bjoern Rosengren, head of Stockholm-based Atlas Copco's construction and mining technique unit, on a conference call.

"They've got the cash to do this and it's positive they're starting to look for growth again," said Michael Andersson, an analyst at Evli Bank's Stockholm office, with a "buy." "It shows they have a bit of optimism about a pickup in the economy."

Atlas Copco is expanding its mining business, which last year boosted earnings as it benefited from orders in South Africa and South America. Chief Executive Gunnar Brock has also invested in compressor and rock-drilling-tool plants in China and a pneumatic-tool factory in India after commercial construction flagged in North America.

Atlas Copco will appoint Robert Fassl as head of Atlas Copco Drilling Solutions, a new unit to be formed under its mining technique business.

Ingersoll is selling a business that dates back to its origins in 1871. Drilling Solutions makes equipment and tools used in mining, quarrying, construction and water-well drilling.

The 950-employee unit had revenue of $300 million in 2003. The sale doesn't include Ingersoll-Rand's France-based Montabert hydraulic rock-crushing unit. Ingersoll-Rand had revenue of $9.88 billion last year.

"We are clearly transforming our company's historic business profile and creating a new foundation to achieve growth and consistent earnings performance," Bermuda-based Ingersoll-Rand said in the statement.