Volvo will purchase Ingersoll Rand's road development division for $1.3 billion, pending government approval, later this year.
The purchase includes heavy compactors,asphalt pavers and milling machines, as well as Ingersoll Rand's material-handling equipment. The acquisition fits into Volvo's current operations within motor graders and "positions Volvo as a full-range manufacturer of heavy road-construction equipment," says Tony Helsham, president of Volvo Construction Equipment.
The acquisition includes 20 dealerships in North America and distribution companies in Europe and Russia. "Geographically, the purchase provides attractive growth possibilities by capitalizing on the common dealer network in North America, Europe and Asia," Helsham says.