Volvo Construction Equipment (Volvo CE) has announced that it is divesting its wholly owned British dealership to long-term distribution partner SMT.
The deal was signed on July 4th and is now followed by an employee consultation period before becoming effective (intended to be on 31st August 2017). The sale includes the distribution rights for Volvo-branded construction equipment machines, parts and aftersales in Great Britain, as well as Volvo Construction Equipment Great Britain’s headquarters in Duxford, Cambridgeshire, its nationwide operations, most other assets and the transfer of all employees. The existing management structure will remain in place.
Commenting on the deal, Volvo CE president Martin Weissburg said: “Volvo CE’s distribution in Great Britain is now in the hands of an independent and strategically aligned distribution partner, led by an experienced leadership team. This move supports the general transformation program that is improving the long-term competitiveness of Volvo CE.”
SMT is already an established Volvo Group distribution partner, distributing Volvo CE products and services in the Netherlands, Belgium and Luxembourg, as well as 18 African nations, including Algeria, Morocco and Nigeria. Part of the SDA Holding group, SMT had revenues in 2016 in excess of €350 million, and is a distribution partner for other Volvo Group companies.
Right strategic partner
“This change is an example of Volvo CE’s objective of focusing on the development of industry-leading products and services, while at the same time partnering with likeminded and entrepreneurial distribution partners,” says Carl Slotte, president of Volvo CE’s Europe, Middle East and African sales region. “We feel that further growth in Great Britain is best achieved under the ownership of a strong independent dealer. We believe SMT, with its impressive record of accomplishment in the construction equipment market, is the right strategic distribution partner to grow and invest in this important European market long term.”
Nick Allen, the MD for the British dealership, believes the acquisition will allow the dealership to become even more agile and enable them to continue to deliver industry leading customer service to its customers. “SMT really understands what it means to represent Volvo, so I am confident that we are in safe hands – we are excited at the prospect for developing the business further under our new owners,” he said.
For further information on Volvo CE in the UK click here