Volvo Construction Equipment has divested its wholly owned Salzburg, Austria-based Central Europe Group to long-term distribution partner Ascendum Group for an undisclosed sum. The deal includes the Austria-owned group of companies and Volvo CE’s business in Romania and Moldova as well as subsidiary dealerships in Bosnia-Herzegovina, Croatia, Czech Republic, Hungary, Slovakia and Slovenia.
The deal, effective Sept. 30, includes the transfer of all assets, employees and sales territories. All employees have become employees of Ascendum, with terms and conditions unchanged. The existing management structure remains in place and Volvo CE will support the business as in the past.
Ascendum Group, known as Group Auto-Sueco Coimbra until June 2012, is one of the world’s largest distributors of Volvo CE products, distributing products and services in Portugal, Spain, the United States, Turkey and Mexico. Founded in 1959 as a Volvo dealership, Ascendum Group is active in four major business lines: industrial machinery and equipment, infrastructure equipment, trucks and cars.
With revenues in 2012 of €500 million, Ascendum is financially secure. The group supports industries including construction, public works, mining, manufacturing, freight and automotive sales.
“After an extensive bid review process, we believe Ascendum Group is the right strategic partner to support our growth ambitions in these European markets,” said Tomas Kuta, president of Volvo CE’s Europe, Middle East and Africa sales region. “Ascendum has been a Volvo dealer for over 50 years and is one of the world’s largest distributors of Volvo CE products. This heritage, coupled with a shared view of the future and a strong balance sheet, offers exciting possibilities for further developing our business across Central Europe.”
