Atlas Copco has agreed to divest its road construction equipment business

January 25 2017

Atlas Copco has agreed to sell its Road Construction Equipment division to French industrial and construction company Fayat Group. 

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 MEUR 309 in 2016.

The divestment is subject to regulatory approvals and is expected to be completed during the second quarter 2017.

Atlas Copco’s Road Construction Equipment division, part of the Construction Technique business area, manufactures rollers for asphalt and soil applications, planers and pavers.