CHARLOTTE, Mich., Jan. 3, 2017 /PRNewswire/ -- Spartan Motors,
Inc. (NASDAQ: SPAR) ("Spartan" or the "Company"), a global leader
in specialty chassis and vehicle design, manufacturing, and
assembly, today announced its wholly-owned subsidiary, Spartan
Motors USA, Inc., has completed
the previously announced acquisition of Smeal Fire Apparatus Co.
("Smeal") and its subsidiaries effective January 1, 2017. Smeal, an industry-leading
innovator and manufacturer of fire apparatus in North America, was acquired for approximately
$36.3 million (subject to a customary
net working capital adjustment), the Company's forgiveness of
certain liabilities owed by Smeal to the Company, and a subsequent
tax gross-up payment, which is expected to be more than offset by
tax benefits accruing to the Company.
Smeal generated 2016 revenues of approximately $100 million, which includes approximately
$30 million of Spartan chassis sold
to Smeal. The newly combined Spartan Emergency Response business
unit will rank as one of the top-four North American fire apparatus
manufacturers in an increasingly consolidating industry. With its
expanded geographic reach spanning 44 states in the U.S., 10
provinces and 3 territories in Canada, the Company is even better positioned
to deliver a robust and respected portfolio of leading products,
services, and technologies to its broad range of customers,
including original equipment manufacturers and dealers.
"This transaction marks a significant event for our Company, and
we are excited to add Smeal's industry-leading product portfolio
and manufacturing expertise to Spartan Motors," said Daryl Adams, President and Chief Executive
Officer of Spartan Motors. "The addition of Smeal complements our
own Spartan Emergency Response business unit while also allowing us
to provide an expanded, innovative product offering to both new and
existing customers. We expect the transaction to be accretive
to 2017 earnings and accelerate the turnaround of the Spartan
Emergency Response business unit."
About Spartan Motors
Spartan Motors, Inc. is a leading designer, engineer,
manufacturer and marketer of a broad range of specialty vehicles,
specialty chassis, vehicle bodies and parts for the fleet and
delivery, recreational vehicle (RV), emergency response, defense
forces and contract assembly (light/medium duty truck) markets. The
Company's brand names— Spartan Motors, Spartan Specialty Vehicles,
Spartan Emergency Response, Spartan Parts and Accessories, and
Utilimaster®, a Spartan Motors Company— are known for quality,
durability, performance, customer service and first-to-market
innovation. The Company operates facilities in Michigan, Indiana, Pennsylvania, Kansas, Wisconsin, Nebraska, South Dakota, Saltillo, Mexico; and Lima, Peru. Spartan reported sales of
$550 million in 2015. Visit Spartan
Motors at www.spartanmotors.com.
About
Smeal
Smeal, including U.S. Tanker Co. and Ladder Tower Co., is
recognized as a premier manufacturer, inventor and innovator of
customized fire apparatus. The company offers a full line of custom
and commercial pumpers, stainless steel tanker, aerial ladders,
platforms, TDA's and wildland urban interface vehicles (WUI). Smeal
is committed to leading the industry in high quality fire
apparatus, delivery times and customer experience. Smeal sells its
products worldwide and is based in Snyder, Neb. To learn more, visit smeal.com
and ustanker.com.
This release contains several forward-looking statements that
are not historical facts, including statements concerning our
business, strategic position, financial projections, financial
strength, future plans, objectives, and the performance of our
products and operations. These statements can be identified by
words such as "believe," "expect," "intend," "potential," "future,"
"may," "will," "should," and similar expressions regarding future
expectations. These forward-looking statements involve various
known and unknown risks, uncertainties, and assumptions that
are difficult to predict with regard to timing, extent, and
likelihood. Therefore, actual performance and results may
materially differ from what may be expressed or forecasted in such
forward-looking statements. Factors that could contribute to these
differences include operational and other complications that may
arise affecting the implementation of our plans and business
objectives; continued pressures caused by economic conditions and
the pace and extent of the economic recovery; challenges that may
arise in connection with the integration of new businesses or
assets we acquire or the disposition of assets; restructuring of
our operations, and/or our expansion into new geographic markets;
issues unique to government contracting, such as competitive
bidding processes, qualification requirements, and delays or
changes in funding; disruptions within our dealer network; changes
in our relationships with major customers, suppliers, or other
business partners, including Isuzu; changes in the demand or supply
of products within our markets or raw materials needed to
manufacture those products; and changes in laws and regulations
affecting our business. Other factors that could affect
outcomes are set forth in our Annual Report on Form 10-K and other
filings we make with the Securities and Exchange Commission (SEC),
which are available at www.sec.gov or our
website. All forward-looking statements in this release are
qualified by this paragraph. Investors should not place undue
reliance on forward-looking statements as a prediction of actual
results. We undertake no obligation to publicly update or
revise any forward-looking statements in this release, whether as a
result of new information, future events, or otherwise.
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SOURCE Spartan Motors, Inc.