STOCKHOLM, Sweden, Jan 19, 2017 /PRNewswire/ --
The reason for the decision to divest the business is that the division does not have the economies of scale to become number one or two in this market segment.
"We have taken a lot of steps over the past years to improve the efficiency of the business, install lean production structures, innovate the product portfolio, and we have strived for improved profitability," said Andrew Walker, President for the Construction Technique business area. "We believe we have found a good owner in Fayat Group that can develop the business further."
The deal 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.
The divestment is subject to regulatory approvals and is expected to be completed during the second quarter 2017.
The divestment will result in a loss of approximately BSEK 2 (BEUR 0.2), primarily related to impairment of intangible assets. The two parties have agreed not to disclose the purchase price.
In Atlas Copco Group accounts, the divested business will be accounted for as discontinued operations as from 2016 accounts.
Atlas Copco's Road Construction Equipment division, part of the Construction Technique business area, manufactures rollers for asphalt and soil applications, planers and pavers. The products are sold under the Dynapac trade name. Atlas Copco has since the acquisition of Dynapac in 2007 integrated light compaction and concrete products into other divisions in the business area.
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SOURCE Atlas Copco