Volvo CE Finalizes Acquisition of Swecon, Bolstering European Retail Network

Strategic Acquisition Completed

Volvo Construction Equipment (Volvo CE) officially announced the completion of its acquisition of Swecon from Lantmännen on January 31, 2026. This strategic transaction, which received regulatory approval from the European Commission, aims to significantly strengthen Volvo CE's retail and service capabilities across key European markets.

The agreement to acquire Swecon was initially announced in June 2025. The acquisition encompasses Swecon's full business scope, including the sale of products and services, rental operations, comprehensive aftermarket services and support, as well as its offices and workshop facilities. It also includes Entrack, a provider of aftermarket solutions.

Expanded European Footprint and Workforce

With this acquisition, Volvo CE integrates Swecon's operations in Sweden, Germany, Estonia, Latvia, and Lithuania. This move is particularly significant for strengthening Volvo CE's presence in its home market of Sweden and in Germany, which stands as Europe's largest construction equipment market. Approximately 1,400 employees from Swecon will transition to Volvo CE, further enhancing the company's operational capacity.

The enterprise value of the acquisition stands at SEK 7 billion. For the full year of 2024, Swecon reported revenues of SEK 10 billion.

Quotes from Leadership

Melker Jernberg, Head of Volvo CE, expressed enthusiasm about the integration, stating, 'We are excited to welcoming all employees from Swecon to Volvo and we believe that together, we will be stronger and better equipped to continue to enhance the support to our customers in their transition towards more sustainable and productive solutions.'

Carl Slotte, Head of Sales Europe at Volvo CE, highlighted the competitive advantage gained: 'Owning and managing most of our retail operations in Europe provides us a competitive advantage to better meet the rapidly changing demands of our customers and drive new business models, while bringing in valuable competence from Swecon.'

Magnus Kagevik, Lantmännen's Group President and CEO, reflected on Swecon's journey: 'Over the past 25 years, Swecon has evolved into a profitable and successful part of Lantmännen's business portfolio. Volvo CE's acquisition of Swecon is a testament to the value that has been built and I am sure that Volvo CE will prove to be a great new home for Swecon, offering a solid foundation for continued growth and development.'

Future Outlook and Financial Impact

Volvo CE views this acquisition as a pivotal step to further invest in and strengthen its retail operations, making retail a core component of its strategy in Europe. The integration is expected to allow Volvo CE to standardize service quality, accelerate the rollout of new technologies, and gather real-world performance data directly from end-users.

The company anticipates a temporary earnings dilution of approximately SEK 300 million in the first quarter of 2026. This is attributed to a higher cost base in inventory, as the acquired Swecon inventory includes pre-acquisition wholesale margins that will be recognized upon sale to end customers. This effect is expected to conclude once the acquired inventory has been sold.