Atlas Copco plans to divest its road construction equipment business
January 12, 2017
Stockholm, Sweden, January 12, 2017: The Board of Directors of Atlas Copco AB has decided to divest the Road Construction Equipment division.
The reason for the planned divestment is that the division does not have the economies of scale to become number one or two in this market segment. With the divestment, Atlas Copco aims to find a better owner for the business. Indicative valuations of the business show a need for an impairment charge of approximately BSEK 2 (BEUR 0.2), primarily related to intangible assets. The impairment charge will be included already in the Group’s 2016 accounts. The Road Construction Equipment division, part of the Construction Technique business area, manufactures rollers for asphalt and soil applications, planers and pavers. The products are known under the Dynapac trade name. The business includes sales and service operations in 37 countries and production units in five countries; Sweden, Germany, Brazil, India and China. The business has 1 265 employees and revenues of approximately MSEK 2 900 (MEUR 309) in 2016.
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This information is information that Atlas Copco AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the contact persons set out above, at 8.30 am CET on January 12, 2017 Atlas Copco is a world-leading provider of sustainable productivity solutions. The Group serves customers with innovative compressors, vacuum solutions and air treatment systems, construction and mining equipment, power tools and assembly systems. Atlas Copco develops products and services focused on productivity, energy efficiency, safety and ergonomics. The company was founded in 1873, is based in Stockholm, Sweden, and has a global reach spanning more than 180 countries. In 2015, Atlas Copco had revenues of BSEK 102 (BEUR 11) and more than 43 000 employees.