Atlas Copco to Explore a Divestment of Its Rental Service Business.STOCKHOLM, Sweden -- Following a thorough strategic review, Atlas Copco Atlas Copco is a Swedish industrial company that was founded in 1873. It manufactures industrial tooling and equipment. The Atlas Copco Group, founded already in 1873, is a global industrial group of companies headquartered in Stockholm, Sweden. (STO:ATCOA) (STO:ATCOB) has decided to explore a divestment of its construction equipment rental operations, i.e. the U.S.-based Rental Service Business Area. In 2005, the business area had revenues of MSEK MSEK Meyer, Suozzi, English & Klein (New York law firm) MSEK Million Swedish Kroner 11 604 (MUSD 1 556), operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. of MSEK 2 666 (MUSD 357) and 5 100 employees. "The Rental Service business is growing and performing extremely well," says Gunnar Brock, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , Atlas Copco Group. "The operating environment In computing, an operating environment is the environment in which users run programs, whether in a command line interface, such as in MS-DOS or the Unix shell, or in a graphical user interface, such as in the Macintosh operating system. and the business characteristics, however, are very different from Atlas Copco's industrial equipment operations and the possibilities to capture and develop synergies are limited." The Atlas Copco Group's strategy is to be and remain a global leader in its businesses. The Atlas Copco Rental Service operation is only active in North America. "To grow Rental Service aggressively - in North America and even more so internationally - would accentuate the operational differences and lack of synergies vis-a-vis the rest of the Group. This would also change the Atlas Copco Group's business and capital profile in an unwanted direction," says Gunnar Brock. The divestment process will start immediately, with the aim of generating the highest possible value for the Atlas Copco shareholders. Deutsche Bank has been retained to advise and assist in this process. Atlas Copco sees attractive opportunities to develop its industrial equipment operations. Following a completed transaction, Atlas Copco's capital structure will be adjusted to reflect the characteristics and growth potential of these operations. Atlas Copco is an international industrial Group with its head office in Stockholm, Sweden. In 2005, the Group had revenues of approximately BSEK 53, with 98% of revenues outside Sweden. The Group has more than 27 000 employees. The Group produces and markets compressed air compressed air, air whose volume has been decreased by the application of pressure. Air is compressed by various devices, including the simple hand pump and the reciprocating, rotary, centrifugal, and axial-flow compressors. equipment and generators, construction and mining equipment, industrial tools, and assembly systems and offers related service and equipment rental. The Atlas Copco Group includes famous brands such as Atlas Copco, RSC RSC Royal Society of Chemistry (UK) RSC Royal Shakespeare Company RSC Responsabilidad Social Corporativa (Spanish: corporate social responsibility) RSC Royal Society of Canada Equipment Rental, and CP. More information can be found on atlascopco.com This information was brought to you by Waymaker http://www.waymaker.net |
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