Volvo Construction Equipment acquires Swecon

Rhea-AI Summary

Volvo Construction Equipment (VLVLY) has announced the acquisition of Swecon's business operations in Sweden, Germany, and the Baltics from Lantmännen for 7 billion SEK. The strategic acquisition includes Swecon's sales operations, rental services, aftermarket support, facilities, and 1,400 employees.

The deal, expected to close in the second half of 2025, will give Volvo CE ownership of the majority of its European business, with particular focus on Germany (Europe's largest construction equipment market) and Sweden (Volvo CE's home market). Swecon generated revenues of 10 billion SEK in 2024, and the acquisition includes Entrack, an aftermarket products provider.

Positive

• Strategic expansion into key markets including Germany (Europe's largest construction equipment market)
• Acquisition adds significant revenue stream with Swecon's 10 billion SEK annual revenue
• Integration of 1,400 employees and extensive operational infrastructure
• Enhanced direct customer collaboration and service capabilities through retail operations
• Strengthened presence in Volvo CE's home market (Sweden) and the Baltic region

Negative

• Significant capital expenditure of 7 billion SEK required for the acquisition
• Integration challenges with 1,400 new employees and multiple facilities across different countries
• Deal completion subject to regulatory approval, introducing timing uncertainty

GOTHENBURG, Sweden, June 24, 2025 /PRNewswire/ -- Volvo Construction Equipment (Volvo CE) has come to an agreement with Lantmännen to acquire the Swecon's business operations in Sweden, Germany and the Baltics including Entrack. Volvo CE will pay 7 billion SEK for the acquisition, which is subject to regulatory approval. Closing of the deal is anticipated in second half of 2025.

The acquisition includes Swecon's business scope in these markets, i.e. sales of products and services, rental operations, aftermarket services & support to customers as well as offices, workshop facilities and 1,400 employees. 

Volvo CE sees this as a strategic move to further invest in retail operations in key markets; Germany, which is Europe's largest construction equipment market, Sweden, Volvo CE´s home market as well as Estonia, Latvia and Lithuania. In addition to the currently owned retail operations footprint, this acquisition will mean Volvo CE will own and manage the majority of the company´s business in Europe, making retail core for Volvo CE in Europe. 

"At this time of transformation of our industry where our competitiveness is put to test, directly collaborating with our customers is even more important to be successful, and through the acquisition of Swecon we believe we can drive an enhanced customer satisfaction", says Melker Jernberg, Head of Volvo CE.

Lantmännen is an agricultural cooperative with diverse activities in agriculture, energy, food and machinery. For the full year of 2024 Swecon revenues amounted to 10 billion SEK. Entrack is a provider of aftermarket products, independently and fully owned by Lantmännen.

June 24, 2025

Journalists wanting further information, please contact:
Claes Eliasson, Head of Media Relations
+46 76 553 7229
press@volvo.com

For more information, please visit volvogroup.com 
For frequent updates, follow us on LinkedIn

The Volvo Group drives prosperity through transport and infrastructure solutions, offering trucks, buses, construction equipment, power solutions for marine and industrial applications, financing and services that increase our customers' uptime and productivity. Founded in 1927, the Volvo Group is committed to shaping the future landscape of sustainable transport and infrastructure solutions. The Volvo Group is headquartered in Gothenburg, Sweden, employs more than 100,000 people and serves customers in almost 190 markets. In 2024, net sales amounted to SEK 527 billion (EUR 46 billion). Volvo shares are listed on Nasdaq Stockholm.

This information was brought to you by Cision http://news.cision.com

https://news.cision.com/ab-volvo/r/volvo-construction-equipment-acquires-swecon,c4167718

The following files are available for download:

https://mb.cision.com/Main/39/4167718/3518851.pdf	Press Release - Volvo Construction Equipment acquires Swecon
https://news.cision.com/ab-volvo/i/2025-volvo-flags,c3420986	2025-volvo-flags

 

View original content:https://www.prnewswire.com/news-releases/volvo-construction-equipment-acquires-swecon-302489291.html

SOURCE AB Volvo

FAQ

How much is Volvo Construction Equipment (VLVLY) paying for Swecon?

Volvo CE is paying 7 billion SEK for the acquisition of Swecon's operations in Sweden, Germany, and the Baltics.

What is Swecon's annual revenue and how many employees will join Volvo CE?

Swecon reported revenues of 10 billion SEK for 2024, and 1,400 employees will join Volvo CE as part of the acquisition.

When will the Volvo CE-Swecon acquisition deal close?

The acquisition is expected to close in the second half of 2025, subject to regulatory approval.

Which markets are included in Volvo CE's acquisition of Swecon?

The acquisition includes Swecon's operations in Sweden, Germany, and the Baltic countries (Estonia, Latvia, and Lithuania).

What assets are included in Volvo CE's Swecon acquisition?

The acquisition includes Swecon's sales operations, rental services, aftermarket support, offices, workshop facilities, and Entrack (an aftermarket products provider).