New President and CEO Named
Mats Rahmström has been appointed as the president and CEO of Atlas Copco AB, effective April 27, 2017. He will replace Ronnie Leten, who is resigning the position after eight years. Rahmström will be Atlas Copco’s 12th president and CEO since the company’s founding in 1873.
Rahmström has been with Atlas Copco since 1988. He has held positions in sales, service, marketing and general management in the company’s Industrial Technique sector. He is currently the senior executive vice president and president of the Industrial Technique. He is also on the board of Permobil Holding AB and of CIBE Lifts AB.
Leten will resign from the board of directors of Atlas Copco AB and his current position at the annual general meeting on April 26, 2017.
Proposal To Split The Group
Atlas Copco’s board of directors is planning to propose a split of the group at the annual general meeting, 2018.
“NewCo” (the working name of the proposed new company) will be mining/civil engineering-focused. It will be comprised of the Mining and Rock Excavation Technique business area and the Construction Tools division. About 12,000 Atlas employees already work in these divisions.
Atlas Copco will manage the Compressor Technique, Vacuum Technique and Industrial Technique business areas and the Portable Energy division.
“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 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.”