Gothenburg, Sweden, September 17, 2024- The board of directors of SKF Group has decided to initiate a spin off of its automotive business, with the aim of listing a separate company on the Nasdaq Stockholm Stock Exchange through tax-free stock dividends to its shareholders. SKF plans to list its automotive business on the Nasdaq Stockholm Stock Exchange in the first half of 2026.
Given the differences in business conditions, end markets, and success drivers between industrial and automotive businesses, a split will help both focus more on their respective market opportunities, thereby enhancing customer value, accelerating growth, improving efficiency, and competitiveness.
Both businesses are global leaders in their respective fields, and by focusing more clearly on their respective areas, independently operated companies will be able to create value for customers more effectively and leverage their strategic advantages. The board and management believe that by splitting the group into two independent companies, long-term value can be created, benefiting customers, employees, and shareholders, "said Hans Str å berg, Chairman of the Board of SKF Group.
After the split, the automotive business will be able to make independent business decisions and invest independently, thereby enhancing its ability to adapt more quickly to the global automotive market transformation. A more targeted and lean automotive business model will further enhance its competitive advantage, enabling it to seize more profit growth opportunities and accelerate the transformation of its profitability.
When we launched our new business strategy in February 2022, we expressed our desire to create a more autonomous automotive business with greater strategic flexibility. I also mentioned that we need to make bold decisions to unlock more long-term profit growth opportunities. One of these decisions is to initiate the spin off of the automotive business, "said Rickard Gustafson, President and CEO of SKF Group.
For industrial businesses, the split will result in a more focused company, which can better formulate and execute its own strategies and allocate resources. After independence, it can more effectively adjust operations to meet the needs of industrial customers, thereby accelerating growth, improving efficiency, enhancing agility, and optimizing end-user experience. This move will also enhance SKF Group's long-term position as a global industrial technology leader, creating value for customers by providing high-quality and sustainable solutions.
According to SKF's full year 2023 data, the net sales of the group's automotive business reached SEK 30 billion, with an adjusted operating profit margin of 5.6%; The net sales of the group's industrial business reached SEK 73 billion, with an adjusted operating profit margin of 15.4%.
The board of directors of the group plans to propose a rights issue and listing proposal for the automotive business at the 2026 shareholders' meeting. If shareholders and other stakeholders approve the proposal, SKF shareholders will receive shares in the automotive business based on their existing shareholding ratio in SKF. The group plans to list its automotive business on the NASDAQ Stockholm Stock Exchange in the first half of 2026.
The group expects that the distribution of shares in the automotive business will meet the requirements of Swedish income tax law Lex Asea, which means that the allocated shares will be exempt from Swedish taxes.
SKF Group
(Release)
