Volvo, Goteborg, Sweden, is purchasing Ingersoll Rand's road development division, a world-leading manufacturer of heavy equipment for road construction and soil compaction, as well as material-handling equipment.
The $1.3-billion (U.S.) transaction is expected to close during the second quarter of 2007, and is subject to relevant approvals.
According to Volvo CEO Leif Johansson, the acquisition gives Volvo a world-leading position in heavy road-construction equipment, and also improves the company's overall competitiveness as a supplier of construction equipment.
The acquired Ingersoll Rand business includes a complete line of heavy compactors, asphalt pavers and milling machines, as well as material-handling equipment. It also includes 20 dealerships in North America and distribution companies in Europe and Russia.
Tony Helsham, president of Volvo Construction Equipment, elaborated, "Strategically, the acquisition of Ingersoll Rand Road Development fits exceptionally well with Volvo's current operations within motor graders, and positions Volvo as a full-range manufacturer of heavy road-construction equipment."
Ingersoll Rand's division for road development, with headquarters in Shippensburg, Pa., has about 2,100 employees. In 2006, it reported sales of $864 million and operating income of $101 million. The operations have manufacturing units in the United States, Germany, India, and China.