ASHEVILLE, N.C. — Volvo Construction Equipment continued its divestment of the territories and assets of multi-state dealer LB Smith by selling its Nashville and Memphis, Tenn., market areas to its Louisiana dealer Scott Construction Equipment Co. Scott Equipment's appointment as the authorized Volvo CE dealer was effective May 28.
Scott Equipment will serve its new market areas from current LB Smith branch facilities in Nashville and Memphis. Scott has also been named Volvo CE dealer for most of Mississippi.
Volvo CE acquired the assets of LB Smith — its dealer for most of the East Coast — associated with the Volvo CE distribution business in May 2003. Since then Volvo has continued operations at the company's 31 locations under the name LB Smith, while working on the divestment of LB Smith's assets.
The divestment of the Tennessee segment is the second major divestment of LB Smith assets, having sold its Florida assets and construction equipment distribution marketing area, with the exception of Tallahassee, to Maitland, Fla.-based Flagler Construction Equipment in April.
“Scott Equipment has been a successful Volvo CE dealer for several years and is a good example of our intention to find only experienced and financially strong buyers that have long-term commitments to the development of the dealerships and partnerships with Volvo CE,” said Volvo CE's executive vice president for sales and marketing Scott Hall. “We have had strong expressions of interest in the LB Smith market areas and have spent the past few months evaluating each interested party on its commitment to invest in and develop the business.”
Based in Baton Rouge, La., Scott Equipment, a subsidiary of The Scott Companies, also has a large rental division, ranked No. 52 on the RER 100. LB Smith, based in Charlotte, N.C., is No. 26 on the RER 100.
Scott became an authorized dealer for Volvo CE's complete product range of articulated haulers, wheel loaders, motor graders, excavators and compact equipment in 2001.