Divestiture of Volvo Rents completed
GÖTEBORG, Sweden--(BUSINESS WIRE)--Regulatory News:
Volvo (STO:VOLVA) (STO:VOLVB):
The previously announced divestiture of Volvo Rents was completed on January 31 2014. The price amounted to USD 1,1 billion, corresponding to SEK 7 billion, and will have a positive impact on the Group’s cashflow and net financial debt within the industrial operation in the first quarter of 2014 with the same amount. The previously announced write down of SEK 1,5 billion will affect the operating income for the fourth quarter 2013
Volvo Rents, formed in 2001, offers rental of a comprehensive range of machines intended for the construction and engineering industry, including Volvo CE products. Volvo Rents has operations in the US, Canada and Puerto Rico and has about 2,100 employees.
All of Volvo Rents’ employees will remain with the company as it is sold. Volvo Rents’ customers will not be affected by the transaction, and Volvo Construction Equipment will continue to sell products to Volvo Rents under the new ownership.
February 3, 2014
For more news from the Volvo Group, visit http://www.volvogroup.com/globalnews.
AB Volvo (publ) may be required to disclose the information provided herein pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act. The information was submitted for publication at 08.00 am CET,February 3, 2014.
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