Volvo to Sell ABG Paver Business to Ammann Group
By Dominic Chopping
STOCKHOLM--Volvo's construction equipment unit has agreed to sell its ABG paver business to the Ammann Group, it said Thursday.
"Volvo Construction Equipment 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," it said.
The divestment includes the ABG paver production and technology center in Hameln, Germany, and about 400 people will move from Volvo CE to join the Ammann Group.
The ABG paver business manufactures machines that lay asphalt and other road surfaces used in the construction industry. It had revenue of around 1.1 billion Swedish kronor ($106.5 million) in 2022.
As a result of the deal, the Volvo group's operating income will be negatively impacted by around SEK650 million in the fourth quarter of 2023, it said.
The transaction is subject to regulatory approvals, with closing expected in the first half of 2024.
Financial terms weren't disclosed.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
December 14, 2023 06:45 ET (11:45 GMT)
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