Volvo Construction Equipment is exiting the asphalt paver manufacturing business, selling its ABG paver line to Ammann.
The move follows the company’s sale of its Blaw-Knox paver business to Florida-based Glencor Industries in 2020.
Volvo says the sale will enable it to “continue to focus on developing sustainable solutions and future technologies and services, in line with the company’s strategic direction.”
Ammann will be able to expand its product portfolio, the company says. The Swiss company already produces asphalt pavers, but in the U.S., it is better known for its compactors and asphalt plants.
“This strategic acquisition completes the depth of our product offerings and makes the solutions we offer customers more comprehensive,” says Hans-Christian Schneider, CEO of the Ammann Group. “The acquisition will also position Ammann with a suite of solutions, covering everything from asphalt plants to paving and compaction.”
Volvo reports that its ABG business had revenues of about $107.4 million in 2022.
The sale includes the transfer of Volvo CE’s paving businesses in Linyi, China; Bangalore, India; and in Hameln, Germany. Volvo says it plans to phase out its operations in Hameln, which will result in about 400 employees transferring to Ammann.
Ammann will take over those operations and says ABG in Hameln will become “the Center of Excellence for paving operations within Ammann.”
“Customers will continue to still have access to the ABG Paving range, as well as aftermarket and other services, through the Ammann Group dealer network and some selected Volvo CE dealers,” Volvo says.
Volvo adds that the sale will result in a loss of operating income for the fourth quarter of 2023 of about $63.45 million.
The transaction is subject to regulatory approvals, with closing expected in the first half of 2024.