AB Volvo finalizes sale of Volvo Aero

AB Volvo has finalized the sale of Volvo Aero to the global engineering company, GKN, for the equivalent of SEK 6.9 billion on a debt-free basis. The transaction was finalized after receiving approval from the appropriate authorities.

The sale is expected to generate a positive nonrecurring effect on operating income of SEK 300 M in the “Corporate functions and other” segment in the fourth quarter, net after reversed depreciations. Financial net debt will be reduced by approximately SEK 5 billion in the fourth quarter.

As a step in further streamlining the Volvo Group toward commercial vehicles, AB Volvo initiated a process of assessing the options of identifying a new owner for Volvo Aero in late November 2011. The company selected GKN plc, a global engineering business that serves the automotive, aerospace and land systems markets. It has operations in more than 30 countries and around 45,000 employees in subsidiaries and joint ventures.

October 1, 2012

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