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Spartan Motors Acquires Royal Truck Body to Expand Reach in West Coast and Southwest
Wednesday 11 September 2019

11 September 2019 - Michigan, US-based vehicle manufacturing and assembly provider Spartan Motors, Inc. (NASDAQ: SPAR) has acquired California, US-based Royal Truck Body, a designer, manufacturer, and installer of service truck bodies and accessories, the company said.
Terms of the transaction were not disclosed.
Royal joins Spartan's Specialty Chassis and Vehicles 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.
The purchase of Royal expands Spartan Motors' manufacturing operations into Southern California, Northern California, and additional West Coast markets, advancing its US footprint strategy with six additional operating facilities located in California, Arizona, and Texas.
Spartan will utilise 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.
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.
Spartan Motors, Inc. is a speciality vehicle manufacturing and assembly company for the commercial and retail vehicle industries (including last-mile delivery, speciality service and vocation-specific upfit segments), as well as for the emergency response and recreational vehicle markets.
In connection with the transaction, Spartan advisors included Donnelly Penman and Partners, serving as M and A and transaction advisor, and Varnum LLP, serving as outside legal counsel.
Details
Date Published: 11/09/2019
Target: Royal Truck Body
Country: USA
Sector: Motor Vehicles
Type: Corporate acquisition
Financing:
Status: Closed
Vendor:
Buyer: Spartan Motors, Inc
Buyer Advisor: Donnelly Penman and Partners , Varnum,  LLP
Comment:
Terms of the deal were not disclosed

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