Volvo Building Apparatus is exiting the asphalt paver production trade, promoting its ABG paver line to Ammann.
The transfer follows the corporate’s sale of its Blaw-Knox paver trade to Florida-based Glencor Industries in 2020.
Volvo says the sale will allow it to “proceed to concentrate on growing sustainable answers and long run applied sciences and services and products, in line with the corporate’s strategic course.”
Ammann will have the ability to enlarge its product portfolio, the corporate says. The Swiss corporate already produces asphalt pavers, however within the U.S., it’s higher identified for its compactors and asphalt crops.
“This strategic acquisition completes the intensity of our product choices and makes the answers we provide consumers extra complete,” says Hans-Christian Schneider, CEO of the Ammann Crew. “The acquisition may also place Ammann with a collection of answers, overlaying the entirety from asphalt crops to paving and compaction.”
Volvo stories that its ABG trade had revenues of about $107.4 million in 2022.
The sale comprises the switch of Volvo CE’s paving companies in Linyi, China; Bangalore, India; and in Hameln, Germany. Volvo says it plans to segment out its operations in Hameln, which can lead to about 400 workers shifting to Ammann.
Ammann will take over the ones operations and says ABG in Hameln will change into “the Middle of Excellence for paving operations inside Ammann.”
“Consumers will proceed to nonetheless have get entry to to the ABG Paving vary, in addition to aftermarket and different services and products, during the Ammann Crew broker community and a few decided on Volvo CE sellers,” Volvo says.
Volvo provides that the sale will lead to a lack of working source of revenue for the fourth quarter of 2023 of about $63.45 million.
The transaction is matter to regulatory approvals, with last anticipated within the first part of 2024.
