Atlas Copco to Divest Road Construction Equipment Business

Atlas Copco will divest its road construction equipment business in order to find a better owner who will be able to increase the unit's strength in the market.

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.