Bendix Commercial Vehicle Systems has sold its commercial vehicle steering system subsidiary, R.H. Sheppard Co., to an affiliate of the Los Angeles-based private equity firm Balmoral Funds.
“The divestiture is a vital part of the BOOST program in place worldwide at Knorr-Bremse. It enables us to align our business with even greater focus and profitability,” said Piotr Sroka, president, CEO, and chief operating officer at Bendix. “While Sheppard is one of the leaders in safety-critical steering, we believe the operation can grow faster and be better aligned with market needs under a new owner who can provide greater expertise in deeply vertically integrated operations.”
The sale includes all of Sheppard’s business, including its branded products, production equipment, sales and service companies, and its interests in production and sales joint ventures. The transition also includes the 680 Sheppard employees across North America, as well as the 600 people at Sheppard’s headquarters in Hanover, Pennsylvania, who will remain as employees of the company. Kevin Stevick has been appointed the new CEO of the company, and Balmoral will still offer Sheppard and its integration with Bendix ADAS and brake systems.
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Now that the sale has closed, Bendix and Balmoral will begin a phased shift of operations and systems, which is expected to take one year. During this period, Bendix will provide marketing, data, and product integration support to Shepard due to its transition agreement.
“While it will initially be business as usual, our transition goal is to help mitigate and minimize upfront risks, establish and maintain momentum, and complete an intelligent transfer with nominal impact to our customers and our suppliers,” said Nicole Oreskovic, Bendix vice president of sales and marketing.
