AB Volvo divests the Group’s subsidiary Volvo Aero to the global engineering company GKN for an enterprise value of SEK 6.9 billion.
“GKN is a strong new owner for Volvo Aero,” says Volvo’s CEO Olof Persson. “GKN will provide Volvo Aero with the best possible conditions for continued advancement in its industry.”
At the end of November 2011 – in a step toward further refinement of the Volvo Group’s focus on heavy commercial vehicles – AB Volvo initiated a process to examine the possibility of finding a new owner for Volvo Aero. A basic premise for the divestment of Volvo Aero has always been that the new owner must be able to offer Volvo Aero a structure to enhance the company’s conditions for advancement in its industry.
AB Volvo has since carried out discussions with a number of potential buyers.
“Volvo Aero has attracted considerable interest, but in our opinion, GKN can offer the best conditions for Volvo Aero’s future advancement,” says Olof Persson. “This transaction will improve our chances to further refine and develop our core business in commercial vehicles, while providing Volvo Aero with an owner that has both the drive and the capacity to advance and strengthen the company.”
The transaction is scheduled for completion during the third quarter of 2012.
GKN plc is a global engineering company serving the automotive, aerospace and land systems markets. Based in Great Britain it has operations in more than 30 countries and around 45,000 employees in subsidiaries and joint ventures. In 2011, GKN saw sales of £6.1bn, of which £1.5bn was accounted for by GKN Aerospace.