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Bendix Commercial Vehicle Systems LLC has sold its subsidiary, R.H. Sheppard Co., Inc., to an affiliate of Balmoral Funds LLC. This strategic move allows Bendix to sharpen its focus on core competencies, including braking systems, vehicle dynamics, air and energy management, and innovative driver assistance systems. The transaction includes Sheppard’s operations, products, and workforce, positioning both companies for growth.
Key Highlights:
- Transaction Details: The sale includes Sheppard’s branded products, production equipment, sales and service operations, and joint venture interests.
- Employee Transition: Approximately 680 employees, including 600 at Sheppard’s Hanover, Pennsylvania headquarters, will remain employed under R.H. Sheppard Co., Inc.
- Strategic Focus: Bendix is prioritizing core technologies, while Balmoral Funds will drive Sheppard’s growth as an independent company.
- Transition Plan: A phased operational shift, expected to take up to one year, includes marketing, data, and product integration support from Bendix.
Bendix finalized the sale as part of Knorr-Bremse’s global BOOST program, which emphasizes focused and profitable operations. Piotr Sroka, president and CEO of Bendix, remarked, “The divestiture is a vital part of the BOOST program… While Sheppard is a leader in safety-critical steering, we believe the operation can grow faster and better align with market needs under new ownership.”
Kevin Stevick, newly appointed CEO of Sheppard, expressed enthusiasm for the company’s future: “Sheppard has built a legacy of trust… As we move forward, our first priority is to uphold and strengthen that reliability.”
Balmoral Funds plans to provide the resources necessary for Sheppard to expand its innovation and strengthen operations. Richard Levernier, Balmoral Funds Board Member, stated, “As a standalone company, Sheppard now has the freedom and focus to chart its own path.”
Sheppard, acquired by Bendix in February 2020, is a leader in commercial vehicle steering systems and related technologies. The phased transition aims to ensure minimal disruption to customers and suppliers. Nicole Oreskovic, Bendix vice president of sales and marketing, highlighted the importance of a smooth transfer, stating, “Our transition goal is to help mitigate and minimize upfront risks… and complete an intelligent transfer with nominal impact.”
Bendix will continue to focus on advancing vehicle safety and performance technologies while supporting Sheppard through the transition period.
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