• 27-FEB-2007

Volvo Announces Acquisition of Ingersoll Rand's Division to Expand Construction Equipment Business

Volvo has reached an agreement with Ingersoll Rand to acquire the assets of the company's road development division, a world-leading manufacturer of heavy equipment for road construction and soil compaction with revenues of USD 864 million in 2006. Operations also include material handling equipment. The purchase price amounts to USD 1.3 billion in cash (SEK 9.2 billion). Volvo's strategy is to expand in the market for road construction equipment, which is worth USD 4 billion annually and is projected to grow substantially as a result of increased investments in infrastructure globally. The acquired business includes a full range of heavy compactors, asphalt pavers and milling machines and provides favorable growth possibilities. The acquisition also strengthens Volvo CE's position in the market for materials handling equipment in North America.