Volvo CE buys its biggest European dealer

Volvo Construction Equipment (Volvo CE) has acquired Swecon, its dealer in Sweden, Germany and the Baltics, for SEK7 billion (€630 million).

The deal, when completed, will see the OEM own the majority of its retail business in Europe and was described by Volvo CE as a “strategic move to invest in retail”.

Swecon’s owner is Lantmännen, the Swedish farming cooperative and agribusiness. The deal includes Entrack Group – acquired by Lantmännen in September 2024 - which sells parts for construction and agricultural equipment in Sweden, Finland, Poland and Italy.

Swecon’s revenues in 2024 were SEK10 billion (€0.9 billion) and it represented around 14% of Lantmännen’s business. Volvo CE’s sales in Europe last year were SEK27 billion (€2.44 billion).

The acquisition includes Swecon’s entire business, comprising sales of products and services, rental operations, aftermarket services and support, and including offices, workshop facilities and 1,400 employees.

The news was released by Volvo CE on the same day that it announced its exit from its part-ownership of Chinese manufacturer SDLG.

Volvo CE said it saw the acquisition as a strategic move to invest in retail operations in key markets and it will now own the majority of its business in Europe. Germany is Europe’s largest construction equipment market and Sweden is Volvo CE’s home market.

A Volvo EWR170 wheeled excavator in action. (Photo: Swecon)

Melker Jernberg, head of Volvo CE, said; “At this time of transformation of our industry where our competitiveness is put to the test, directly collaborating with our customers is even more important to be successful. Through the acquisition of Swecon, we believe we can enhance customer satisfaction.

Carl Slotte, head of sales Europe at Volvo CE added that owning most of its retail sales operations gave it a “a competitive advantage to better meet the rapidly changing demands of our customers and drive new business models, while bringing in valuable competence from Swecon.”

Lantmännen’s president and CEO Magnus Kagevik said Volvo CE was a natural home for Swecom; “Over the past 25 years, Swecon has evolved into a profitable and successful part of Lantmännen’s business portfolio.

“Volvo CE has expressed a strong wish to get closer to the customer, and their initiative to acquire Swecon is testament to the value that has been built within the business.”

In May, Swecon signed a dealership agreement with Ammann Group covering Sweden, Germany, Estonia and Latvia.