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Atlas Copco Announces Acquisition of Dynapac

STOCKHOLM, Sweden — Atlas Copco AB entered into an agreement with Altor 2003 Fund to acquire Dynapac AB of Sweden, a supplier of compaction and paving equipment for the road construction market. The acquisition — Atlas Copco's first in the compaction segment — will strengthen Atlas Copco's position in an expanding global market and add a new range of products for construction customers worldwide. The total purchase price is approximately U.S. $898.1 million, with approximately U.S. $299.4 million in assumed debt.

Dynapac, with its head office in Malmö, Sweden, has an annual volume of approximately U.S. $655.7 million and 2,100 employees. The estimated operating margin in 2006 was 11.3 percent. It has production sites in six countries and sales in more than 115 countries.

The acquisition will give Atlas Copco additional products and sales channels to grow in the expanding road construction market, as new roads are constructed in many countries, such as China and India.

“We welcome Dynapac into the Atlas Copco Group,” said Gunnar Brock, president and CEO of Atlas Copco. “Dynapac is one of the top brands in its market and we look forward to working together with its management, staff and distributors to further strengthen its market position.”

“Atlas Copco has identified road construction as a strategic growth area,” added Björn Rosengren, business area president, Atlas Copco Construction and Mining Technique. “It is a market of about BSEK 30 [about U.S. $4.3 billion] with an expected growth of 4 to 5 percent annually given the expected renewal of the western world's infrastructure as well as growing infrastructure investments in the developing world.”

Dynapac will be part of Atlas Copco's Construction and Mining Technique business area. The completion date of the acquisition is dependent upon the required approvals from the relevant authorities.

Atlas Copco is a gobal provider of industrial productivity solutions. The products and services range from compressed air and gas equipment, generators, construction and mining equipment, industrial tools and assembly systems, to related aftermarket and rental.

TAGS: Ar Mag
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