Volvo partner takes central European interests

Volvo Construction Equipment has sold its dealership interests in central Europe to its long-term distribution partner, Ascendum Group.

Volvo CE’s wholly-owned Central Europe Group based in Salzburg, Austria, has been sold to Ascendum for an undisclosed sum.

The deal includes the Austrian-owned group of companies and Volvo CE’s business in Romania, which also includes Moldova. The Austrian company’s subsidiary dealerships and territories in Bosnia-Herzegovina, Croatia, the Czech Republic, Hungary, Slovakia and Slovenia are also included in the transaction.

The deal became effective today, 30 September, and includes the transfer of all assets, employees and sales territories. The existing management structure is being kept in place and Volvo CE said it would continue to support the business as in the past.

Volvo CE said its distribution in Central Europe was now in the hands of “a well-financed, independent and strategically-aligned partner”.

Ascendum Group – known as Group Auto-Sueco Coimbra until its name change in June 2012 – is one of the world’s largest distributors of Volvo CE products, distributing the company’s products and services in Portugal, Spain, the US, 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. In 2012, it had revenues of €500 million, and overall, the group operates in industries ranging from construction and public works to mining, manufacturing, freight and automotive sales.

Tomas Kuta, president of Volvo CE’s Europe, Middle East and African sales region, said, “After an extensive bid review process, we believe Ascendum Group is the right strategic partner to support our growth ambitions in these important European markets.

“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.”

Ascendum’s president of the executive board, Ricardo Mieiro, said, “This acquisition is an important part of Ascendum’s growth strategy, and neatly connects the Austrian-Turkish corridor.”

He added, “The Central European countries, together with Ascendum operations in the Iberian Peninsula and in the Americas, represent a crucial step in meeting Ascendum’s long-term goals, based as they are on our historical partnership with Volvo.”