Soon Atlas Copco will spin off it’s mining-related business as Epiroc. This week, the new company hosted its first annual Capital Markets Day, in Örebro, Sweden. “It is very exciting that we will soon be listed on the stock exchange,” said Per Lindberg, Epiroc president and CEO. “We are starting the journey as an independent company fully focused on providing innovative solutions that increase customers’ productivity, safety and energy efficiency.”
During the first quarter of 2018, Epiroc’s orders increased organically by 21% and reached more than SEK 10 billion ($1.1 billion). The company said it believes demand for the second quarter will remain on a similar level.
The Capital Markets Day includes presentations by Per Lindberg; Anders Lindén, CFO; Helena Hedblom, senior executive vice president mining and infrastructure; and other members of management. They discussed the new company’s structure and the reason behind the move. Atlas Copco and Epiroc are global leaders in their respective areas, however, the synergies between the two are limited as both businesses serve different end markets.
The new name is derived from the Greek word “epi,” meaning at, and the Latin term for rock, “rocca.” Epiroc means “at rock,” which reflects the company’s commitment to mining and rock excavation. Roughly 70% of Epiroc’s customers are mining companies, who make significant investments in equipment for long-term projects.
As for the business itself, Epiroc is composed of six business areas: underground mining equipment, surface drilling, other specialty applications and service for those areas, along with drilling tools and hydraulic attachments. Those segments are grouped under two divisions: Equipment & Services and Tools & Attachments.
The presentations also included examples of how Epiroc’s innovations and strategies in automation, digitalization, battery-operated equipment and aftermarket support will help customers increase their productivity in a sustainable way.
June 12 will be the last day for trading in shares of Atlas Copco, including the right to receive shares in Epiroc. The record date for the distribution of shares in Epiroc will be Thursday, June 14. Shares in Epiroc will begin trading on the Nasdaq Stockholm stock exchange on June 18.