Volvo Construction Equipment (Volvo CE) has announced it is acquiring “special application partner” CeDe Group for an undisclosed sum.
CeDe Group, based in Malmo, Sweden, is a low-volume adaptor of construction and mining machinery for special applications. Working for several OEMs, including Volvo CE and its dealers, its adaptations have included developing new bodies for haulers (e.g. fuel, water, waste), rail conversions for wheeled excavators, and conversions for underground mining applications.
CeDe will remain a standalone business, but Volvo CE says it will add resources to allow the company to expand its market reach and customer bases.
A Volvo spokesperson told Construction Equipment that CeDe has supplied modified equipment to Volvo CE North America in the past, and this deal means that, “It would like, over time, to expand in all markets, with the U.S. being an obviously attractive one.”
The objectives for Volvo CE include expanding its product offering into new segments and applications, as well as providing a partner that can deliver low-volume prototypes and production runs. The company will continue to provide and expand its engineering services to non-Volvo customers.
“This acquisition makes sense on a number of strategic levels,” says Volvo CE president Melker Jernberg. “CeDe has already proven that it has a depth of engineering talent in adapting our machines for specialized 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.”
The deal will include CeDe's intellectual property, operations, other assets, and a staff of around 45 full-time employees.
CeDe was formed in 2000 and can trace its roots back to Volvo’s original excavator business, Åkerman.
