Spartan Motors, Inc. announced its wholly-owned subsidiary, Spartan Motors USA, Inc., has completed the previously announced acquisition of Smeal Fire Apparatus Co. and its subsidiaries effective Jan. 1, 2017.
Smeal, manufacturer of fire apparatus in North America, was acquired for approximately $36.3 million (subject to a customary net working capital adjustment), the Company’s forgiveness of certain liabilities owed by Smeal to the Company, and a subsequent tax gross-up payment, which is expected to be more than offset by tax benefits accruing to the Company.
Smeal generated 2016 revenues of approximately $100 million, which includes approximately $30 million of Spartan chassis sold to Smeal. The newly combined Spartan Emergency Response business unit will rank as one of the top-four North American fire apparatus manufacturers in an increasingly consolidating industry. With its expanded geographic reach spanning 44 states in the U.S., 10 provinces, and three territories in Canada, the Company is even better positioned to deliver a robust and respected portfolio of leading products, services, and technologies to its broad range of customers, including original equipment manufacturers and dealers, according to Spartan.
“This transaction marks a significant event for our Company, and we are excited to add Smeal’s industry-leading product portfolio and manufacturing expertise to Spartan Motors,” said Daryl Adams, president and CEO of Spartan Motors. “The addition of Smeal complements our own Spartan Emergency Response business unit while also allowing us to provide an expanded, innovative product offering to both new and existing customers. We expect the transaction to be accretive to 2017 earnings and accelerate the turnaround of the Spartan Emergency Response business unit.”