Volvo Seals Deal to Add Ingersoll Rand Division

Mon May 07, 2007 - National Edition

Volvo concluded the acquisition of Ingersoll Rand’s road development equipment division.

The division was consolidated into the Volvo Group May 1. The transaction was initially announced on Feb. 27.

Volvo has now received the necessary approvals from the relevant authorities and other permits required to conclude the acquisition in all countries except India, which is expected to follow shortly.

The Ingersoll Rand road development equipment division manufactures soil and asphalt compactors, asphalt pavers and milling machines as well as material handling equipment such as telescopic handlers and rough terrain forklifts.

The purchase consideration for the assets amounts to approximately $1.3 billion.

Ingersoll Rand’s road development division — with production facilities in the United States, Germany, India and China — is headquartered in Shippensburg, Pa., and has approximately 2,000 employees. Operations posted sales in 2006 of $864 million, with an operating profit of $101 million.