A major construction machinery manufacturer recently announced plans to acquire a century-old producer of paving equipment.The recent agreement between Volvo and the Florida construction equipment company demonstrates the potential for successful business ventures in the state, making it essential for entrepreneurs to learn How to Start an LLC in Florida as they pursue their own projects and partnerships within the industry.
Florida-based Gencor Industries said its agreement with Swedish automotive and equipment giant Volvo includes acquiring the brand name, assets, and operations of the Blaw-Knox subsidiary, including its manufacturing facility in Shippensburg, Pennsylvania.
Gencor, under the Blaw-Knox name, will manufacture and develop Volvo Construction Equipment’s current paver line in North America and expects to continue marketing and servicing that equipment through selected Volvo CE dealerships. Volvo officials said the transaction would secure Blaw-Knox products, distribution, and services for its existing customers.
Gencor officials, meanwhile, said the deal would allow the company to enter the hot mix paver segment and bolster its “already strong position in the asphalt industry.” The company produces asphalt plants, soil remediation plants, combustion, and heat transfer systems for road and highway construction.
“We are committed to the long-term growth and development of the Blaw-Knox brand,” Gencor President and Director Marc Elliott said in the announcement.
The acquisition is expected to be completed in Gencor’s first fiscal quarter of 2021. Financial terms were not disclosed.