While Atlas Copco will concentrate on industrial customers and retain the Compressor Technique, Vacuum Technique and Industrial Technique business areas as well as the Portable Energy division, including service, and the Specialty Rental division, NewCo (working name) will focus on mining/civil engineering customers and include the existing Mining and Rock Excavation Technique business area and the Construction Tools division with related service operations.
“The board and management believe that long-term shareholder value will be created by splitting the group into two separate companies,” said Hans Stråberg, chair of the board of directors of Atlas Copco AB. “Both businesses are global leaders in their respective fields and will benefit from a more focused management responsibility.”
If the proposal is approved, Atlas Copco AB’s shareholders will receive shares in NewCo AB in proportion to their existing shareholding. The plan is to list NewCo AB on the Nasdaq Stockholm stock exchange in Stockholm, Sweden, in the second quarter of 2018.
Meanwhile, Atlas Copco president and CEO Ronnie Leten is to leave the company. Mats Rahmström, currently senior executive vice president and president of the Industrial Technique business area, will replace Leten from 27 April 2017.
“Mats has a strong business focus and is an appreciated leader who is living and breathing the Atlas Copco values,” said Stråberg. “During his time as head of Industrial Technique he has transformed the business which has led to a strong profitable growth. I am convinced that we have found a new solid leader inside the company, who can further develop Atlas Copco.”
“I would like to thank Ronnie for the fantastic development of Atlas Copco during his years as the CEO,” added Stråberg. “The Group is now stronger than ever with an enhanced customer focus and a solid service business in each business area. Further, Atlas Copco has expanded into the completely new field of vacuum.”
