Atlas Copco (Stockholm, Sweden; www.atlascopco.com) has appointed Mats Rahmström as the new President and CEO of Atlas Copco AB, effective April 27, 2017. He will replace Ronnie Leten, who has requested to leave his position after having managed Atlas Copco successfully during eight years.
“Mats has a strong business focus and is an appreciated leader who is living and breathing the Atlas Copco values,” said Hans Stråberg, Chair of Atlas Copco’s Board of Directors. “During his time as head of Industrial Technique he has transformed the business which has led to a strong profitable growth. I am convinced that we have found a new solid leader inside the company, who can further develop Atlas Copco.”
Mats Rahmström, currently Senior Executive Vice President and President of the Industrial Technique business area, began his Atlas Copco career in 1988. He held positions in sales, service, marketing and general management within Industrial Technique during the first 10 years. Between 1998 and 2006 he held positions as General Manager for customer centers in Sweden, Canada, and then in the United Kingdom. Before he took on his current position in 2008 he was President of the Tools and Assembly Systems General Industry division within Atlas Copco’s Industrial Technique.
He is a board member of Permobil Holding AB and of CIBE Lifts AB.
Separately, the company announced plans to propose to the Annual General Meeting 2018 to decide on a split of the group into two listed companies, Atlas Copco and “NewCo” (working name), and to distribute NewCo to the shareholders.
NewCo will focus on mining/civil engineering customers and include the existing Mining and Rock Excavation Technique business area and the Construction Tools division with related service operations. This business has approximately 12 000 employees.
Atlas Copco will focus on industrial customers and include the Compressor Technique, Vacuum Technique and Industrial Technique business areas plus the Portable Energy division, including service, and the Specialty Rental division. This business has approximately 33 000 employees.
“The Board and Management believe that long-term shareholder value will be created by splitting the Group into two separate companies,” said Hans Stråberg, Chair of the Board of Directors of Atlas Copco AB. “Both businesses are global leaders in their respective fields and will benefit from a more focused management responsibility.”
The Atlas Copco Group covers a diverse range of business segments and end-customers. Atlas Copco has over the years grown profitably and developed strong customer relations globally.
“The two businesses have different demand drivers and demand characteristics,” said Ronnie Leten, President and CEO of the Atlas Copco Group. “A split will increase their respective abilities to add value to customers, grow the business and attract talent.”
If the shareholders decide in favor of the proposal, the split of the Group is planned to be done through a share distribution, whereby Atlas Copco AB’s shareholders will receive shares in NewCo AB in proportion to their existing shareholding. The intention is to list NewCo AB on the Nasdaq Stockholm stock exchange in Stockholm, Sweden, in the second quarter 2018.
The distribution of NewCo AB is foreseen to meet the requirements of Lex Asea, meaning that the Swedish-based shareholders of Atlas Copco AB are taxed only on the value of the shares received when they sell them.