Editions:  Austria · Denmark · France · Germany · Italy · Norway · Spain · Sweden · Switzerland
Advertisement

Volvo buys American road-builder

Share this article

16:04 CET+01:00
Swedish truck manufacturer Volvo said on Tuesday that it had reached an agreement to pay $1.3 billion for the road-building division of US group Ingersoll Rand.

"Volvo has reached an agreement with Ingersoll Rand to acquire the assets of the company's road development division," Volvo said in a statement.

Ingersoll Rand is a manufacturer of heavy equipment for road construction and soil compaction with revenues of $864 million, Volvo said in a statement.

Volvo, which sold its Volvo Cars division to Ford in 1999, is a world leader in heavy truck manufacturing. The group also has a large division for construction equipment.

The acquisition "gives Volvo Construction Equipment a world-leading position within heavy road construction equipment," Volvo chief executive Leif Johansson said.

The deal will enable Volvo to offer a full-range of heavy road construction equipment, Volvo Construction Equipment president Tony Helsham said.

Geographically, the purchase "provides attractive growth possibilities by capitalizing on the common dealer network in North America, Europe and Asia", he said.

Synergies at the operating income level are expected to reach 600 million kronor ($85.6 million) annually to be achieved within five years.

Ingersoll Rand's division for road development is based in Shippenburg, Pennsylvania and has 2,100 employees.

The Volvo share price was down by 1.73 percent at 567 kronor on the Stockholm stock exchange in morning trading after the announcement, in a market down by about 2.05 percent.

Get notified about breaking news on The Local

Share this article

Advertisement

From our sponsors

Zagreb: Spend this summer in Croatia's vibrant capital city

Lush green parks throughout the city centre, imposing heritage buildings, real Central European cafe society and Mediterranean style hospitality. Welcome to Zagreb, Croatia's stunning capital!

Advertisement
Advertisement
Advertisement
Advertisement
Advertisement

Popular articles

Advertisement
Advertisement