CHARLOTTE, Mich., Feb. 3, 2020 /PRNewswire/ -- Spartan Motors,
Inc. (NASDAQ: SPAR) (the "Company"), 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
recreational vehicle markets, today announced the sale of its
Emergency Response (ER) segment to REV Group, Inc. (NYSE:
REVG). REV Group (REVG) paid approximately $55 million in cash at closing, which is subject
to a net working capital adjustment, and assumed certain
liabilities of the ER segment. The transaction has been unanimously
approved by the Company's Board of Directors.
"The divestiture of the ER business unit will give us the speed
and flexibility needed to further focus on accelerating growth and
profitability in our commercial, fleet, delivery, and specialty
vehicles markets where we see the biggest opportunity to generate
higher returns," said Daryl Adams,
President and Chief Executive Officer. "By freeing up additional
resources and capital to better serve our target markets and make
additional strategic investments, we can continue to evolve to meet
the needs of our customers and provide long-term value to our
shareholders."
The ER business unit had revenue of approximately $253.3 million for the 12 months ended
September 30, 2019. Proceeds from the
sale, effective February 1, 2020,
will be initially used to pay down debt and support working capital
requirements. As part of the transaction, REVG purchased the rights
to the "Spartan" brand name. Accordingly, the Company will be
changing its corporate name in the coming months, subject to
shareholder approval. REVG has licensed the "Spartan" name and the
"Spartan diamond" logo back to the Company for use in the Company's
RV chassis business.
"The divestiture marks an important step in our business
transformation. E-commerce, electrification and autonomous
technologies are driving dramatic change in the industry and this
action positions us to continue to provide leading solutions for
our customers. I appreciate the dedication of our ER associates
over the past 45 years and I wish them success," concluded
Adams.
For more information, please visit
www.spartanmotors.com/transformation.
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 recreational
vehicle markets. The Company is organized into two core business
segments: Spartan Fleet Vehicles and Services and Spartan Specialty
Vehicles. Today, its family of brands also include Utilimaster,
Royal Truck Body, Strobes-R-Us, Spartan Chassis, Spartan Authorized
Parts, Spartan Authorized Service Centers, and Spartan Factory
Service Centers. 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, and Saltillo,
Mexico. 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. 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 separating
this business unit from Spartan's retained businesses and
transferring the Emergency Response business to REV Group;
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.
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SOURCE Spartan Motors, Inc.