Ferronordic eyes U.S. growth following Rudd Equipment acquisition
Swedish dealer group acquired Rudd for $95M in November 2023
Swedish construction and truck dealership group Ferronordic is looking to grow its U.S. business in 2024 following the acquisition of Rudd Equipment at the close of last year.
Ferronordic acquired Clearfield, Pa.-based Rudd Equipment for $95 million in November, according to the company’s earnings presentation. Rudd Equipment distributes Volvo Construction Equipment, Hitachi, Sandvik and Link-Belt lifts at 13 locations across nine states along the Rust Belt, including:
- Illinois;
- Indiana;
- Kentucky;
- Maryland;
- Missouri;
- Ohio;
- Pennsylvania;
- Tennessee; and
- West Virginia.
“Rudd has a strong long history of solid customer base and very strong brand name and good customer relations, and we can build together a stronger and bigger company in the area,” Ferronordic Chief Executive Lars Corneliusson said on the company’s earnings call today.
“Our operations in [the] USA also offer us a base in the world’s second-largest market for construction equipment and provide opportunities for possible further expansion in the future,” Corneliusson said in a letter to shareholders.
Rudd, which employs 360 people, posted $258.1 million in sales in 2023, down from $308.3 million in 2022, according to the earnings release.
In 2023, Rudd sold 351 new units and 127 used units, and 96 units were converted to sales from rental, according to the release. Rudd did not break out unit sales in its 2022 audited US GAAP financials.
Shares of Ferronordic [STO: FNM] were trading at $6.60 (68.10 SEK) as of 5:30 pm EST, down 3.54%, or $0.24, from market open. The company has a market capitalization of $96.7 million.
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