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Volvo to sell rental unit in $1.1 bln deal
December 10, 2013 / 7:40 AM / 4 years ago

Volvo to sell rental unit in $1.1 bln deal

STOCKHOLM, Dec 10 (Reuters) - World number two truck maker Volvo said on Tuesday it had agreed to sell its machine rental business in North America, Volvo Rents, to U.S. private equity firm Platinum Equity for about 7.2 billion Swedish crowns ($1.1 billion).

Volvo said in a statement the sale was part of its strategy to focus on core business and that the deal would cut the group’s net debt by the same amount as the purchase price.

However, the transaction was seen denting Volvo’s operating income by about 1.5 billion crowns in the fourth quarter of 2013, it added. ($1 = 6.5407 Swedish crowns) (Reporting by Niklas Pollard)

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