BASF has signed a contract with Atlas Copco to sell its MEYCO Equipment business that provides concrete spraying machines to the tunneling and mining industries. The machinery manufacturer, which is based in Stockholm, Sweden, will continue operations at the only production site of MEYCO Equipment in Winterthur, Switzerland.
Currently, about 40 employees work in the MEYCO Equipment business at the Winterthur site and the sales and service office in Hermsdorf, Germany. All employees will be transferred to the new owner. The business achieved sales of about €20 million in 2011. Both parties have agreed to not disclose financial details of the transaction. The purchase is subject to approval by the relevant authorities and legal closing of the transaction is expected by the end of the first quarter of 2013.
In BASF, MEYCO Equipment is part of the Construction Chemicals division’s global underground construction activities providing mainly chemical solutions for tunneling and mining. Chemicals optimizing the properties of sprayed concrete strongly contribute to the efficiency of the spraying process and the quality of its final results. However, the business of engineering, assembling and selling concrete spraying machines is driven by success factors different from the chemical industry.
“Atlas Copco offers excellent conditions for the future development of MEYCO Equipment as a machinery business,” said Dr. Tilman Krauch, President of BASF’s Construction Chemicals division. “At the same time it is our goal to maintain the benefit of optimized solution packages consisting of machines and chemicals. Therefore, we aim to establish a close partnership with Atlas Copco in the field of product development,” explained Krauch.
“The acquisition of MEYCO Equipment is a good strategic fit for Atlas Copco as it broadens the offering for our existing customers by equipment for shotcreting,” said Bob Fassl, Business Area President for Atlas Copco Mining and Rock Excavation Technique. “Shotcreting is a growth segment thanks to high safety requirements in tunneling and we look forward to introducing these products through our global sales channels, both to mining and underground civil construction customers.”
Atlas Copco is an industrial group with world-leading positions in compressors, expanders and air treatment systems, construction and mining equipment, power tools and assembly systems. Atlas Copco’s Mining and Rock Excavation Technique business area provides equipment for drilling and rock excavation, a complete range of related consumables and service through a global network.