Volvo CE Divests Dealerships In Central Europe
Volvo Construction Equipment has sold its dealership interests in Austria, Bosnia-Herzegovina, Croatia, the Czech Republic, Hungary, Moldova, Romania, Slovakia and Slovenia to the Ascendum Group. The company said it has divested its wholly owned Salzburg-based Central Europe Group to long-term distribution partner Ascendum Group for an undisclosed sum.
The deal includes the Austrian-owned group of companies and Volvo CE’s business in Romania, which also includes Moldova. The Austrian company’s subsidiary dealerships and territories in Bosnia-Herzegovina, Croatia, the Czech Republic, Hungary, Slovakia and Slovenia are also included in the transaction.
“After an extensive bid review process, we believe Ascendum Group is the right strategic partner to support our growth ambitions in these important European markets,” said Tomas Kuta, president of Volvo CE’s Europe, Middle East and African sales region. “Ascendum has been a Volvo dealer for over 50 years and is one of the world’s largest distributors of Volvo CE products. This heritage, coupled with a shared view of the future and a strong balance sheet, offers exciting possibilities for further developing our business across Central Europe.”
The deal was effective Sept. 30th and included the transfer of all assets, employees and sales territories. All employees of the Central Europe Group have transferred to the employment of Ascendum, where their terms and conditions remain unchanged. The existing management structure is also being kept in place and Volvo CE said will continue to support the business as in the past.
Ascendum Group – known as Group Auto-Sueco Coimbra until its name change in June 2012 - is one of the world’s largest distributors of Volvo CE products, distributing the company’s products and services in Portugal, Spain, the U.S., Turkey and Mexico. Founded in 1959 as a Volvo dealership, Ascendum Group is active in four major business lines - industrial machinery and equipment, infrastructure equipment, trucks and cars. The group had revenues in 2012 of €500 million.
“This acquisition is an important part of Ascendum’s growth strategy and neatly connects the Austrian-Turkish corridor,” said Ricardo Mieiro, president of Ascendum’s executive board. “The Central European countries, together with Ascendum operations in the Iberian Peninsula and in the Americas, represent a crucial step in meeting Ascendum’s long-term goals, based as they are on our historical partnership with Volvo.”