Volvo CE has reached an agreement to divest the ABG Paver Business to the Ammann Group.
As a result of the deal, Ammann Group intends to expand their business and invest in ABG Pavers.
The deal includes the ABG Paver production and technology center in Hameln, Germany, and will ensure the availability of the range and full support through the Ammann Group distribution channels and selected Volvo CE dealers.
In a statement, Volvo CE and the Ammann Group confirmed they see this as the best way to maintain and develop the long-established ABG heritage in the paver business for relevant customers, dealers, suppliers and employees.
As a consequence of the divestment, production of Volvo CE compaction equipment in Hameln will be phased out over time.
The agreement will benefit both companies by strengthening the product portfolio and distribution network of the Ammann Group, while allowing Volvo CE to continue to focus on developing sustainable solutions and future technologies and services, in line with the company´s strategic direction.
The Ammann Group is a Swiss-based, family-owned, world-leading supplier of mixing plants, machines and services to the construction industry with core expertise in roadbuilding and transportation infrastructure, which they intend to develop further through the ABG Paver business expansion.
The number of employees impacted as a result of this announcement is approximately 400.
Customers will continue to still have access to the ABG Paving range, as well as aftermarket and other services, through the Ammann Group dealer network and some selected Volvo CE dealers.
The transaction is subject to regulatory approvals and works council consultations, and closing is anticipated in the first half of 2024.