Subjects: LIC, ACC
Volvo Construction Equipment reaches agreement to divest the ABG paver business
GOTHENBURG, Sweden, Dec. 14, 2023 /PRNewswire/ -- Volvo Construction Equipment (Volvo CE) and the Ammann Group have reached an agreement whereby Ammann will acquire Volvo CE's global ABG paver business. As a result of the planned transaction, the Volvo Group's operating income will be negatively impacted by approximately SEK 650 M in the fourth quarter of 2023.
The divestment includes the ABG paver production and technology center in Hameln, Germany, and will ensure the availability of the range and full support through the Ammann Group distribution channels and selected Volvo CE dealers. Volvo CE and the Ammann Group see this as the best way to maintain and develop the long established ABG heritage in the paver business for relevant customers, dealers, suppliers and employees. As a consequence of the divestment, production of Volvo CE compaction equipment in Hameln will be phased out.
In 2022, ABG paver business had revenues amounting to SEK 1,100 M. As part of the divestment process, about 400 people will move from Volvo CE to join the Ammann Group.
The negative earnings effect will be reported in the segment Construction Equipment and be excluded from adjusted operating income. The transaction is subject to regulatory approvals. Closing is anticipated in the first half of 2024.
December 14, 2023
Journalists wanting further information, please contact:
Claes Eliasson, Volvo Group Media Relations, +46 76 553 72 29
For more information, please visit volvogroup.com For frequent updates, follow us on X: @volvogroup
The Volvo Group drives prosperity through transport and infrastructure solutions, offering trucks, buses, construction equipment, power solutions for marine and industrial applications, financing and services that increase our customers' uptime and productivity. Founded in 1927, the Volvo Group is committed to shaping the future landscape of sustainable transport and infrastructure solutions. The Volvo Group is headquartered in Gothenburg, Sweden, employs more than 100,000 people and serves customers in almost 190 markets. In 2022, net sales amounted to SEK 473 billion (EUR 45 billion). Volvo shares are listed on Nasdaq Stockholm.
The following files are available for download:
Volvo Construction Equipment reaches agreement to divest the ABG paver business | |
https://news.cision.com/ab-volvo/i/volvo-ce-divests-abg-paver-business-to-ammann-1860x1050,c3249087 | Volvo CE divests ABG Paver Business to Ammann 1860x1050 |
SOURCE AB Volvo
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