Volvo Construction Equipment has acquired CeDe Group, a Swedish builder of specialized equipment.
CeDe Group is based in Malmo, Sweden. The deal, which is expected to be finalized by mid-March, includes CeDe’s intellectual property, operations, other assets and staff of about 45 full-time employees. The acquisition price was not disclosed.
As the company’s annual production is relatively low, the deal is not expected to have an effect on the income or financial position of Volvo CE.
CeDe Group is known in Scandinavia as a low-volume adaptor of construction and mining machinery for special applications.
Working for several leading heavy equipment manufacturers, including Volvo CE, adaptations include developing new bodies for haulers, rail conversions for wheeled excavators, as well as conversions for underground mining applications.
The company was created in 2000 and traces its roots back to Volvo’s original excavator business, Åkerman.
“We are extremely pleased to be joining the Volvo CE family of companies,” said Krister Johnsson, CeDe Group’s chief executive. “With our already long and good relationship with Volvo CE and deep understanding of its products, we are excited at the opportunities to develop our services and expand our reach into new markets.”
You may also like:
- Our Top 5 acquisition stories of 2018
- Terex sells Demag, plans to exit three other product lines
- TimberPro acquired by Komatsu America Corp
Under Volvo ownership, CeDe is expected to remain an entrepreneurial, standalone business. Volvo CE will make its abilities available to the company and add additional resources to allow CeDe to expand its market reach and customer base, in an effort to become a European leader in this specialized field.
A strengthened partner will also support Volvo CE’s objectives of expanding its product offering into new segments and applications, as well as providing a partner who can deliver low volume prototypes and production runs.
“This acquisition makes sense on a number of strategic levels,” said Volvo CE President Melker Jernberg. “CeDe has already proven that it has a depth of engineering talent in adapting our machines for specialized applications. This closer relationship will allow Volvo CE to grow our product offerings while at the same time boosting CeDe’s ability to expand into new markets and segments, both with Volvo CE and its other OEM customers.”
The company will continue to provide and expand its engineering services to non-Volvo CE customers.