As part of its stated intent to divest the territories and assets of its former dealer, LB Smith, Volvo Construction Equipment (Volvo CE), has sold its Nashville and Memphis, TN, market areas to its Louisiana dealer, Scott Construction Equipment Co. (Scott Equipment).
The appointment of Scott Equipment as an authorized Volvo CE dealer for this area became effective May 28.
The company will serve its new market areas from current LB Smith branch facilities in Nashville and Memphis. In conjunction with this appointment, Scott Equipment has also been named the Volvo CE dealer for most of the state of Mississippi.
Volvo CE purchased the assets associated with the Volvo CE distribution business of LB Smith Inc. –– its dealer for most of the East Coast of the United States –– in May 2003. Since then, Volvo CE has continued operations at the 31 locations under the name LB Smith to ensure that customers continue to receive high standards of product support and service. At the time of the acquisition, Volvo CE announced its intention to divest the business over time. This deal forms part of that process.
In referring to the strategy behind the sale of the former LB Smith assets, Volvo CE’s executive vice president of sales and marketing, Scott Hall, said, “Scott Equipment has been a successful Volvo CE dealer for several years and is a good example of our intention to find only experienced and financially strong buyers that have long-term commitments to the development of the dealerships and partnerships with Volvo CE.
“We have had strong expressions of interest in the LB Smith market areas and have spent the past few months evaluating each interested party on its commitment to invest in and develop the business,” Hall concluded.
The sale of these territories to Scott Equipment is the second divestment Volvo CE has made in recent weeks of its LB Smith holdings. In late April, Volvo CE sold its Florida construction equipment distribution marketing area, with the exception of Tallahassee, to Flagler Construction Equipment LLC, Maitland, FL.
Scott Construction Equipment Co., headquartered in Baton Rouge, LA, is now an authorized dealer of Volvo CE’s complete product range of articulated haulers, wheel loaders, motorgraders, excavators and compact equipment in 2001. The company serves Volvo CE customers throughout Louisiana from branch facilities in Baton Rouge, New Orleans, Lafayette and Lake Charles – and, now the Nashville, Memphis, TN, and Mississippi market regions. Scott Equipment is a subsidiary of The Scott Companies, founded in Monroe, LA, in 1939 by T. H. (Tom) Scott.
The Scott group of companies serves customers in the construction, agriculture, forestry and petrochemical industries in five southern U.S. states.