Volvo CE acquires dealer L.B. Smith in the United States
May 07 2003 - 10:06AM
UK Regulatory
Volvo CE acquires dealer L.B. Smith in the United States
Volvo Construction Equipment, Volvo CE, has today announced the purchase
of the assets associated with the Volvo distribution business of L.B.
Smith, Inc., its largest dealer in the United States and distributor for
a majority of the East Coast.
Volvo CE takes over the assets, primarily inventory, and certain
liabilities at fair wholesale market value. No goodwill or real estate
is included in the deal.
Volvo CE intends to continue the operation from the existing 31
locations in Florida, Georgia, Tennessee, Alabama, North and South
Carolina, New Jersey, eastern Pennsylvania and New York. The new company
will be doing business as LB Smith.
Volvo CE's action is taken in order to ensure that the Volvo customers
in these territories continue to receive highest possible standards of
product support and service.
"More than 4 years of recession in the overall US market for
construction equipment is impacting both manufacturers and dealers. We
feel it's important to show our customers and the employees of L.B.
Smith our strong commitment to the US market," says Scott Hall,
Executive Vice President and responsible for Global Marketing & Sales
within Volvo CE.
Volvo's strategy to work mainly together with independent dealers
remains and the ambition is to spin off the acquired distribution
business, most likely in a number of smaller pieces compared with today.
"We have already been approached by people who have a sincere interest
to invest in the Volvo brand and distribution of our products," says
Scott Hall.
For further information, please contact:
Klas Magnusson. Senior Vice President, Corporate Communications, Volvo
Construction Equipment
Tel: +32 2 482 5065, Mobile: +32 475 576214
Christer Johansson, Investor Relations, AB Volvo
Tel: +46 31 66 13 34
May 7, 2003