Volvo Truck Sells U.S. Machine Rental Unit

AB Volvo says it has reached agreement to sell its Volvo Rents machinery rental business in North America to Platinum Equity for 7.2 billion krona ($1.1 billion).

The deal, which is expected to close before the end of March, is contingent upon the California-based equity firm complete a debt offering to pay for the acquisition. Volvo describes the sale as an effort to focus on its core commercial truckmaking operations.

Volvo Rents, which was formed in 2001, supplies construction and engineering machinery in Canada, the U.S. and Puerto Rico. Last year the unit generated sales of 3.1 billion krona ($475 million) and posted an operating loss of 47 million krona ($7.2 million).