MUNICH – Knorr-Bremse AG, announced it has entered into a definitive agreement to buy R.H. Sheppard Co., Inc. from WABCO for $149.5 million USD.
The acquisition will be carried out by Bendix Commercial Vehicle Systems LLC (“Bendix”).
Sheppard is an industry-leading supplier of steering technologies for commercial vehicles.
Bendix is an indirect subsidiary of Knorr-Bremse AG, a leading global supplier of braking systems and other safety-critical rail and commercial vehicle systems.
The closing of the acquisition is subject to closing conditions and regulatory approvals and is contingent upon the closing of the ZF acquisition of WABCO.
With the acquisition of Sheppard, Knorr-Bremse is broadening its international position in the field of steering systems, having already achieved a major expansion in Asia with the acquisition in 2019 of the commercial-vehicle steering division of Hitachi Automotive Systems in Japan.
Knorr-Bremse is to acquire Sheppard from WABCO Holdings Inc., USA (“WABCO”) which is selling Sheppard in connection with the proposed takeover of WABCO by ZF Friedrichshafen AG (“ZF”). The agreed purchase price was $149.5 million.
The closing of the acquisition of Sheppard by Knorr-Bremse is subject to closing conditions and regulatory approvals and is contingent upon the closing of the ZF acquisition of WABCO. Closing is expected in the first half of 2020.
“For Knorr-Bremse the acquisition of Sheppard is another important step in our strategy to become a global manufacturer of steering systems for commercial vehicles. With integrated steering and braking systems for commercial vehicles, we can realize globally expanded functions in driver assistance and automated driving together with our customers and leverage cost potential through system integration,” explained Dr. Peter Laier, Member of the Executive Board of Knorr-Bremse AG responsible for the Commercial Vehicle Systems division.
“Sheppard is an ideal addition to the product portfolio. As a leading commercial vehicle supplier in North America, Bendix will be even better able to respond to the requirements of North American customers in the different market segments. This is how tailor-made system solutions for North American trucks and buses become possible,” says Michael J. Hawthorne, Bendix president & CEO.
R.H. Sheppard Co., Inc. was founded in 1937 and manufactures components for the global commercial vehicle and transportation industries. The company develops and manufactures steering systems for commercial vehicles and related products and services to the highest quality standards.
This is excerpted from a Knorr-Bremse announcement. The entire announcement can be read by clicking on this sentence.