Milwaukee, WI— REV Group, Inc. (NYSE: REVG), a manufacturer of specialty vehicle brands, announced today it has completed the acquisition of Spartan Emergency Response (Spartan ER), a designer, manufacturer and distributor of custom emergency response vehicles, cabs and chassis for the emergency response market, and its brands, from Spartan Motors, Inc. (NASDAQ: SPAR) effective February 1, 2020. Spartan ER was acquired for approximately $55 million in cash, subject to a net working capital adjustment and certain liabilities of the business to be retained by Spartan Motors, Inc. post-closing.
Spartan Emergency Response and its brands, Spartan Fire Apparatus and Chassis, Smeal Fire Apparatus, Ladder Tower (LCT), and UST, will immediately become part of REV’s Fire & Emergency (“F&E”) segment. The newly combined business will further solidify F&E as a top-two North American fire apparatus manufacturer offering significant production scale, diverse product offerings, wide-ranging channel relationships and broad geographic sales coverage.
“We are excited to acquire a top North American fire apparatus manufacturer of scale with a well-recognized, innovative and broad product offering, long-standing relationships with dealers and municipal customers, and a growing installed base of over 6,000 vehicles,” states Tim Sullivan, President and CEO of REV Group. “It’s our long-term strategy to continue to grow this segment, as well as continue to establish REV Group as a leader in the innovation of fire apparatus and other emergency response vehicles.”
As of September 30, 2019, Spartan ER generated last twelve months (“LTM”) net revenues of $253.3 million and acquired Spartan ER backlog represents approximately 74 percent of anticipated calendar 2020 sales. A supplemental slide deck describing this transaction has been posted to the REV Group, Inc. investors website at https://investors.revgroup.com. Represents units sold since 2006 (includes custom chassis sold to OEMs).
About REV Group
REV Group, Inc. (NYSE: REVG) is a designer, manufacturer and distributor of specialty vehicles and related aftermarket parts and services. We serve a diversified customer base primarily in the United States through three segments: Fire & Emergency, Commercial and Recreation. We provide customized vehicle solutions for applications including: essential needs (ambulances, fire apparatus, school buses and municipal transit buses), industrial and commercial (terminal trucks, cut-away buses and street sweepers) and consumer leisure (recreational vehicles (“RVs”) and luxury buses). Our brand portfolio consists of 33 well-established principal vehicle brands including many of the most recognizable names within our served markets. Several of our brands pioneered their specialty vehicle product categories and date back more than 50 years.
About Spartan Emergency Response Spartan Emergency Response is a designer, manufacturer and distributor of custom emergency response vehicles, cabs, chassis and complete apparatus made to customer specifications and used by the fire industry throughout the United States and Canada, as well as select markets in South America and Asia.