Atlas Copco to acquire Dynapac, expanding its presence in the construction market
Stockholm, Sweden, February 5, 2007: Atlas Copco AB has entered into an agreement with Altor 2003 Fund to acquire Dynapac AB of Sweden, a leading supplier of compaction and paving equipment for the road construction market. The acquisition 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 BSEK 6.3 (MEUR 700), whereof approximately BSEK 2.1 in assumed debt.
Dynapac, with its head office in Malmö, Sweden, has a turnover of approximately BSEK 4.6 (MEUR 505) and 2100 employees. The estimated operating margin in 2006 was 11.3%. It has production sites in six countries and sales in over 115 countries. See www.dynapac.com for more information.
The new business is a very good fit with, and at the same time an extension of, other businesses in Atlas Copco. Atlas Copco has a recognized presence in construction, which currently represents about 22% of its revenues. 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. 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,” says Gunnar Brock, President and CEO of Atlas Copco.
“Atlas Copco has identified road construction as a strategic growth area. It is a market of about BSEK 30 with an expected growth of 4-5 percent annually given the expected renewal of the western world’s infrastructure as well as growing infrastructure investments in the developing world,” adds Björn Rosengren, Business Area President, Atlas Copco Construction and Mining Technique.
“We believe that Atlas Copco will be an excellent new owner for Dynapac. With its global reach and operational excellence, we believe that Atlas Copco will be able to add significant long-term value to Dynapac and its customers,” comments Harald Mix, Partner of Altor Equity Partners.
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.