Development gear maker Volvo CE has introduced the acquisition of its Swedish vendor Swecon for $700m.
Swecon sells building machines in Sweden, Germany and the Baltic States.
Volvo purchased it from Swecon’s mother or father Lantmännen, a farming cooperative and equipment retailer.
Volvo mentioned it could take over Swecon’s “complete enterprise scope”, together with gross sales and after-sales service and 1,400 staff. Final yr, Swecon’s turnover was round $1bn.
The corporate mentioned the transfer strengthened its presence in Germany, which is Europe’s largest building gear market, in addition to the opposite nations. It added that this is able to make retail a core enterprise for Volvo CE in Europe.
“At the moment of transformation of our business the place our competitiveness is put to the take a look at, straight collaborating with our clients is much more necessary to achieve success,” mentioned Volvo CE’s chief govt Melker Jernberg.
“By way of the acquisition of Swecon, we consider we are able to improve buyer satisfaction,” he added.
Magnus Kagevik, chief govt of Lantmännen, mentioned: “Volvo CE has expressed a robust want to get nearer to the client, and their initiative to accumulate Swecon is testomony to the worth that has been constructed throughout the enterprise.”
The acquisition is topic to regulatory approval and shutting of the deal is anticipated within the second half of 2025.
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The submit Volvo CE buys personal vendor for $700m to spice up German gross sales appeared first on World Development Evaluation.
