Andrew Harrer/Bloomberg News
Volvo Group said it will sell its North American equipment rental subsidiary for $1.1 billion to equity firm Platinum Equity.
Volvo said it is selling its construction rental business, Volvo Rents, to focus on the core business and that it expects the deal to close in the first quarter of 2014.
“We looked at different alternatives to grow Volvo Rents’ business and concluded that the best alternative is to sell the operation to another owner. Volvo Rents’ business does not have a sufficiently strong connection with [Volvo Group’s] core operation to motivate continued ownership,” Volvo Group CEO Olof Persson said in a statement.
Volvo Rents had an operating loss of 47 million kroner ($8.67 million) in the first nine months of 2012 and has about 2,100 employees, according to its parent company.