Atlas Copco compaction machines and concrete equipment taken over by the Husqvarna Group

Atlas Copco compaction machines and concrete equipment taken over by the Husqvarna Group

Recently, the Atlas Copco group, which is the leading supplier of equipment for industry and trade, has decided to sell the department dealing with compaction machines and concrete material to Husqvarna. Atlas Copco LG 400 compactor, Atlas Copco LP 6505 roller or Atlas Copco LT 5005 jumper are just some of the devices that will soon appear on the market under a new brand.

The Swedish company Atlas Copco is a pioneer in the production of compressors, vacuum devices, construction and mining equipment or power tools. The company employs more than 45,000 employees worldwide, operates in more than 180 countries, and 2016 only in the segment of equipment for concrete and compaction of soil and asphalt, generated revenues of 57 million euros. The upcoming changes in connection with the takeover of the LCC department are treated as an opportunity and an opportunity. In October 2017, the company sold another department - road machinery - to the Fayat group. The current plans for strategy changes envisage narrowing the number of areas to be developed so that they can focus only on the selected and the most profitable ones.

Husqvarna, in turn, sees vast potential in the acquired area. As Kai Wärn, president and CEO of Husqvarna Group said: "According to our reports, sales, operating income and margin and cash flow increased in the first half of the year. We have recorded growth in many key areas for the company. Going forward, we will continue to invest in strategic growth initiatives to further strengthen our position. " The good results of the Husqvarna group have led the company to expand its business. As Kai Wärn added: "Atlas Copco's compact concrete and compaction equipment is perfectly in line with Husqvarna Construction's strategy of expanding the concrete equipment segment on the market."

Although the buy-out price of the Atlas Copco group is unknown and will remain a secret, both sides do not hide their optimism. The upcoming changes are perceived as a potential for further action. "Our commitment to construction remains as strong as ever; going further we will have a specific product portfolio, thanks to which we will focus on improvement in a given area. This will allow us to focus our resources on increasing innovation and productivity and to improve customer satisfaction. We believe that Husqvarna Construction will be a good home that will be able to develop further the concrete and compaction department "- summed up Andrew Walker, president of the Atlas Copco Power Technique department.

Philip Herselman confirmed his words, CEO of Power Technique at Atlas Copco Industrial South Africa "In this situation, it is important to remember that Atlas Copco remains true to our trading partners. We will work closely with Husqvarna to ensure a smooth transition and continuity of supply and support. " Thanks to the acquisition, it will be possible to focus on the central areas of the group's activity, i.e. the development of technologies related to air, energy and flow. Atlas Copco's strategy today is to expand its market position and presence as a global supplier for portable compressors, pumps, generators and lighting towers, as well as a range of complementary niche products, such as power amplifiers.

Shortly, approximately 200 employees will join Husqvarna. In addition to the range of products for concrete and compaction (including LG 204 compactor, LF 100 compactor, LT 600 jumper, BG 375 trowel and LP 6505), including plate compactors, tandem rollers and concrete vibrators, the transaction also includes a production plant in Ruse, Bulgaria, as well as production assets in Nashik, India. The finalisation of the sale is planned for the beginning of 2018.

In terms of the novelty, it is evident that Husqvarna plans to launch products that were previously known under the Atlas Copco brand (their sale in 2016 was around EUR 57 million). Pictures from various sources confirm that soon on the market we can expect the premiere of such devices as:

  • Husqvarna LG 400 vibratory plate,
  • Husqvarna LG 204 vibratory plate,
  • Husqvarna LG 164 vibratory plate,
  • Husqvarna LF 100 vibratory plate,
  • Husqvarna LP 6505 roller,
  • Husqvarna BG 375 trowel,
  • Husqvarna LT 600 rammer,
  • Husqvarna LT 5005 rammer.

We are still waiting for the official announcement regarding the finalisation of the acquisition and further plans for companies in the industrial sector. Let's hope that the new strategy for both Husqvarna and Atlas Copco will prove to be beneficial, and good cooperation during the acquisition will maintain the high quality of the products offered, which will soon be available in the offer.

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