STOCKHOLM, SWEDEN – Atlas Copco will propose at its 2018 annual general meeting that the group be split into two listed companies, Atlas Copco and NewCo (working name), and to distribute NewCo to the shareholders.
NewCo will focus on mining/civil engineering customers and include the existing mining and rock excavation business area and the construction tools division with related service operations. This business has approximately 12,000 employees.
Atlas Copco will focus on industrial customers and include the compressor, vacuum and industrial business areas plus the portable energy division, including service, and the specialty rental division. This business employs approximately 33,000.
“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 Atlas Copco AB. “Both businesses are global leaders in their respective fields and will benefit from a more focused management responsibility.”
“The two businesses have different demand drivers and demand characteristics,” said Ronnie Leten, president and CEO of the Atlas Copco Group. “A split will increase their respective abilities to add value to customers, grow the business and attract talent.”
If the shareholders decide in favor of the proposal, the split of the group is planned to be done through a share distribution, whereby Atlas Copco AB’s shareholders will receive shares in NewCo AB in proportion to their existing shareholding. The intention is to list NewCo AB on the Nasdaq Stockholm stock exchange in the second quarter 2018.
Shareholders can find more information at www.AtlasCopcoGroup.com/investor-relations/.