CHARLOTTE, Mich., Sept. 10, 2019 /PRNewswire/
-- Spartan Motors, Inc. (NASDAQ: SPAR) ("Spartan" or
the "Company"), the North American leader in specialty vehicle
manufacturing and assembly for the commercial and retail vehicle
industries (including last-mile delivery, specialty vehicles,
commercial vehicle assembly, and vocation-specific upfit segments),
as well as for the emergency response and recreational vehicle
markets, today announced it purchased Royal Truck Body (Royal), a
leading, California-based
designer, manufacturer, and
installer of service truck bodies and accessories. Royal joins
Spartan's Specialty Chassis and Vehicles (SCV) business unit and,
in recognition of the strength of the brand, will continue to go to
market under the Royal Truck Body™ name.
The acquisition is the latest action driven by Spartan's
strategic plan and will result in the achievement of three of the
plan's key goals: EBITDA margin growth, increased revenue, and
geographic expansion by way of delivering on the promise of a
coast-to-coast manufacturing and distribution footprint.
"This is an exciting day for Spartan," said Daryl Adams, President and Chief Executive
Officer of Spartan Motors. "Our acquisition of Royal Truck Body
marks the continued execution of our strategic plan and delivers on
the promise of nationwide expansion to the benefit of our
customers, suppliers, team members, and our shareholders."
The purchase of Royal expands Spartan Motors' manufacturing
operations into Southern
California, Northern
California, and additional West Coast markets, advancing its
U.S. footprint strategy with six additional operating facilities
located in California,
Arizona, and Texas. Spartan will utilize Royal's existing
production facility in Carson,
California, and its five other locations throughout the Sun
Belt to build and distribute commercial trucks more efficiently and
cost effectively to West Coast customers across its business
units.
Spartan expects the transaction to be accretive to earnings on
an annualized basis in 2020.
"As we welcome Royal to the Spartan family and work to grow our
combined business, we see many opportunities to further our value
proposition of additional expansion into the trades, fleet, and
last mile delivery categories nationwide. Our long-term strategy is
to broaden our geographic footprint with increased capabilities for
each regional location to offer a comprehensive suite of products
and services," Adams said.
Royal manufactures and assembles truck body options for various
trades, service utility truck bodies, stake body trucks, service
vans, contractor trucks, and dump trucks that complement Spartan's
Work-Driven Design™ vocational solutions across GVWR Classes 1-7.
Royal's product set builds on the momentum of Spartan's recent
General Truck Body acquisition, allowing Spartan's expanded West
Coast operations to support tradespeople and fleets of all
sizes.
"I'm thrilled that Spartan represents such a close fit with our
company values and culture, including hard work, accountability and
customer satisfaction," said Dudley
DeZonia, former President, Royal Truck Body. "Spartan
has a compelling vision and success story, and I am confident the
future will be incredibly bright for Spartan and the Royal Truck
Body brand."
In connection with the transaction, Spartan advisors included
Donnelly Penman & Partners
(DPP), serving as M&A and transaction advisor, and
Varnum LLP, serving as outside legal counsel.
More information on the acquisition can be found at
www.spartanmotors.com/royal.
About Spartan
Motors
Spartan Motors, Inc. is the North American leader in specialty
vehicle manufacturing and assembly for the commercial and retail
vehicle industries (including last-mile delivery, specialty service
and vocation-specific upfit segments), as well as for the emergency
response and recreational vehicle markets. The Company is organized
into three core business segments: Spartan Fleet Vehicles and
Services, Spartan Emergency Response and Spartan Specialty
Vehicles. Today, its family of brands also include Spartan
Authorized Parts, Spartan Factory Service Centers, Utilimaster,
Royal Truck Body, Strobes-R-Us, Smeal, Ladder Tower and UST.
Spartan Motors and its go-to-market brands are well known in their
respective industries for quality, durability, aftermarket product
support and first-to-market innovation. The Company employs
approximately 2,500 associates, and operates facilities in
Michigan, Indiana, Pennsylvania, South
Carolina, Florida,
Missouri,
California, Arizona, Texas, Nebraska, South Dakota; Saltillo, Mexico; and Lima, Peru. Spartan reported sales of
$816 million in 2018. Learn more
about Spartan Motors at www.spartanmotors.com.
This release contains several forward-looking statements that
are not historical facts, including statements concerning our
expectations regarding the future performance of the Royal Truck
Body™ business and its effect on 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 difficulties we may encounter in integrating
this business with Spartan's existing business; operational and
other complications that may arise affecting the implementation of
our plans and business objectives; continued pressures caused by
economic conditions; issues unique to government contracting, such
as competitive bidding processes, qualification requirements, and
delays or changes in funding; changes in our relationships with
major customers, suppliers, or other business partners; 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 update or revise any forward-looking
statements in this release, whether as a result of new information,
future events, or otherwise.
CONTACT:
Investors:
Juris Pagrabs
Group Treasurer & Director of Investor Relations
Spartan Motors, Inc.
(517) 997-3862
Media:
Samara Hamilton
Corporate Director of Marketing and Communications
Spartan Motors, Inc.
Samara.Hamilton@spartanmotors.com
(517) 997-3860
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SOURCE Spartan Motors, Inc.