Asheville, N.C.-based Volvo Construction Equipment last week acquired Volvo equipment distribution businesses from the company’s largest North American dealer, L.B. Smith Inc., Mechanicsburg, Pa. The acquisition is effective immediately.
Volvo CE takes over the assets, primarily inventory, and certain liabilities at fair wholesale market value, according to Volvo officials. No good will or real estate is included in the deal.
Volvo CE intends to continue the operations from the existing 31 locations in Florida, Georgia, Tennessee, Alabama, North and South Carolina, New Jersey, Virginia, eastern Pennsylvania and New York. The company will be do business as LB Smith. Volvo officials said it intends to retain most of the company’s existing employees.
Volvo CE’s action is taken in order to ensure that the Volvo customers in these territories continue to receive highest possible standards of product support and service, the company said.
“More than four years of recession in the overall US market for construction equipment is impacting both manufacturers and dealers,” said Scott Hall, executive vice president, global marketing and sales for Volvo CR. “We feel it’s important to show our customers and the employees of L.B. Smith our strong commitment to the U.S. market.”
Volvo’s strategy to work mainly together with independent dealers remains, company officials said, adding that it is likely to sell the acquired distribution business over time, in smaller pieces.
“We have already been approached by people who have a sincere interest to invest in the Volvo brand and the distribution of our products,” said Hall.
Dennis Slagle was appointed president of LB Smith. Present regional vice presidents of L.B. Smith, Chris Wilmot, Walt Joachim, Jim Stem and Bob Thompson, will remain in their positions. Headquarters for the new company will be in Charlotte, N.C.
L.B. Smith owned and operated 35 construction equipment dealership sales and service locations throughout the Eastern and Southeastern United States, 31 of these locations are authorized Volvo branches.
L.B. Smith is No. 19 on the RER 100.
