Volvo Construction Equipment is to acquire special application partner CeDe Group for an undisclosed sum, the Sweden-based company has said.
CeDe Group, based out of Malmo, Sweden, has a good reputation in the Nordic region as a low-volume adaptor of construction and mining machinery for special applications, according to Volvo CE. It has worked with several original equipment manufacturers (OEMs), including Volvo CE and its dealers, developing new bodies for haulers (eg fuel, water, waste), rail conversions for wheeled excavators, as well as conversions for underground mining applications.
The deal, which is expected to come into force by mid-March, will include CeDe’s intellectual property, operations, other assets and staff of around 45 full-time employees. As the annual volumes produced are relatively low, the deal will have no material effect on the income or financial position of Volvo CE, the company said.
Interestingly, CeDe, formed in 2000, can trace its roots back to Volvo’s original excavator business, Åkerman.
“Under Volvo CE ownership, the vision is that CeDe will remain an agile, entrepreneurial, standalone business,” Volvo CE said. “Volvo CE will make available its considerable competences to the company and add additional resources to allow it to expand its market reach and customer bases, becoming a European leader in this specialised field.”
A strengthened partner will also support Volvo CE’s objectives of expanding its product offering into new segments and applications, as well as providing a partner who can deliver low volume prototypes and production runs, Volvo CE said.The company will continue to provide and expand its engineering services to non-Volvo CE customers, it added.
Volvo CE President, Melker Jernberg, said: “This acquisition makes sense on a number of strategic levels. CeDe has already proven that it has a depth of engineering talent in adapting our machines for specialised applications. This closer relationship will allow Volvo CE to grow our product offerings while, at the same time, boosting CeDe’s ability to expand into new markets and segments, both with Volvo CE and its other OEM customers.”
CeDe Group’s Chief Executive, Krister Johnsson, said: “We are extremely pleased to be joining the Volvo CE family of companies. With our already long and good relationship with Volvo CE and deep understanding of its products, we are excited at the opportunities to develop our services and expand our reach into new markets.”