Construction equipment maker Volvo CE has announced the acquisition of its Swedish dealer Swecon for $700m.
Swecon sells construction machines in Sweden, Germany and the Baltic States.
Volvo bought it from Swecon’s parent Lantmännen, a farming cooperative and machinery retailer.
Volvo said it would take over Swecon’s “entire business scope”, including sales and after-sales service and 1,400 employees. Last year, Swecon’s turnover was around $1bn.
The company said the move strengthened its presence in Germany, which is Europe’s largest construction equipment market, as well as the other countries. It added that this would make retail a core business for Volvo CE in Europe.
“At this time of transformation of our industry where our competitiveness is put to the test, directly collaborating with our customers is even more important to be successful,” said Volvo CE’s chief executive Melker Jernberg.
“Through the acquisition of Swecon, we believe we can enhance customer satisfaction,” he added.
Magnus Kagevik, chief executive of Lantmännen, said: “Volvo CE has expressed a strong wish to get closer to the customer, and their initiative to acquire Swecon is testament to the value that has been built within the business.”
The acquisition is subject to regulatory approval and closing of the deal is anticipated in the second half of 2025.
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