Swedish multinational engineering firm Atlas Copco AB (STO: ATCO-A) (OTC: ATLKY), a leading provider of sustainable productivity solutions based in Stockholm, said it is seeking to divest its Dynapac road construction equipment business, which it had acquired from Nordic private equity firm Altor Equity Partners in 2007.
Dynapac manufactures a complete range of compaction, paving and milling equipment products and spare parts, “from the very smallest to one of the world’s biggest,” and is considered a world leader for mobile compactors for road surfaces. However, the company says it does not have “the economies of scale to become number one or two in this market segment.”
Indicative valuations of the business are said to show a need for an impairment charge of approximately BSEK 2 (BEUR 0.2), primarily related to intangible assets, which are expected to be reflected in the company’s 2016 financial reports.
The business includes sales and service operations in 37 countries and production units in Sweden, Germany, Brazil, India and China. Dynapac has 1,265 employees and reported revenues of approximately MSEK 2,900 (MEUR 309) in 2016.
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 and has a global reach spanning more than 180 countries. Manufacturing is mainly concentrated in Belgium, Sweden, Germany, the United States, India and China. In 2015, Atlas Copco had revenues of BSEK 102 (BEUR 11) and more than 43,000 employees.
On January 13, Atlas Copco ADR shares closed at $31.23, bringing its OTC market capitalization to $37.31 billion.