WABCO Holdings, a global supplier of technologies and services that improve the safety, efficiency and connectivity of commercial vehicles, today announced that it has signed an agreement to acquire privately held RH Sheppard Co, a key supplier of commercial vehicle technologies, including industry-leading vehicle steering capabilities, headquartered in USA.
The transaction is subject to customary U.S regulatory clearance and it is expected to close by the end of the third quarter 2017. WABCOs purchase price is $145mn, subject to customary adjustments. Sheppard had sales of $130mn in 2016.
Jacques Esculier, chairman and CEO, WABCO, said:This acquisition represents another key milestone as WABCO advances toward enabling self-driving commercial vehicles; we have a clear line of sight on the fundamental technologies such as active steering, active braking, electronic stability control, and other advanced driver assistance systems which will enable significant intermediary steps on our industrys path to realize fully autonomous driving.
A tier-one supplier in North America, Sheppard offers a suite of power-steering gears that has set the industry standard for heavy-duty commercial and specialty vehicles. Employing more than 900 persons, Sheppard also provides precision engineered engine pumps and state-of-the-art remanufacturing services. In addition, the company is vertically integrated with its own manufacturing and advanced foundry capabilities, which WABCO expects to use for some of its products.
Furthermore, through an existing exclusivity agreement with a leading supplier of steering actuation controls, Sheppard will be able to offer a compact, cost-effective, breakthrough technological solution that enables active steering control for commercial vehicle manufacturers in North America.
Oliver Hoar, president and CEO, Sheppard, said: We are excited at the prospect of joining WABCO. Our leading technologies will be fully integrated into the strategy of this industry leader on a journey to create opportunities for further growth in North America and globally.
Full dynamic control of commercial vehicles lateral and longitudinal is necessary to progressively achieve the industrys vision of autonomous driving. The acquisition of Sheppard is a key capability toward providing lateral control through active steering, which is a cornerstone that complements WABCOs technologies in longitudinal control through active braking, stability, and suspension controls.