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Atlas Copco sells Dynapac road construction brand

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

The Swedish industrial group said it decided to offload the business because it does “not have the economies of scale to become number one or two in this market segment”.

Andrew Walker, President for the Construction Technique business area, said: “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. 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 SEK 2.9mn ($327,000) in 2016.

The divestment is subject to regulatory approvals and is expected to be completed during the second quarter 2017. The two parties have agreed not to disclose the purchase price.

Atlas Copco’s Road Construction Equipment division, part of the Construction Technique business area, manufactures rollers for asphalt and soil applications, planers and pavers sold under the Dynapac trade name which Atlas Copco acquired in 2007.

Last week the Swedish firm agreed to acquire Erkat Spezialmaschinen und Service GmbH, a German manufacturer of drum cutter attachments for excavators, for an undisclosed price.

“Drum cutters are an ideal complementary product for Atlas Copco as a solution provider in rock excavation, tunnel and foundation profiling and demolition,” said Andrew Walker.


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