From the REV website:
REV Group, Inc. (NYSE: REVG), a manufacturer of industry-leading specialty vehicle brands, announced today it has completed the acquisition of Spartan Emergency Response (Spartan ER), a leading designer, manufacturer and distributor of custom emergency response vehicles, cabs, and chassis for the emergency response market, and its brands, from Spartan Motors, Inc. (NASDAQ: SPAR) effective February 1, 2020. Spartan ER was acquired for approximately $55 million in cash, subject to a net working capital adjustment and certain liabilities of the business to be retained by Spartan Motors, Inc. post-closing.
Spartan Emergency Response and its brands, Spartan Fire Apparatus and Chassis, Smeal Fire Apparatus, Ladder Tower (LTC), and UST, will immediately become part of REV’s Fire & Emergency segment. The newly combined business will further solidify F&E as a top-two North American fire apparatus manufacturer offering significant production scale, diverse product offerings, wide-ranging channel relationships, and broad geographic sales coverage.
“We are excited to acquire a top North American fire apparatus manufacturer of scale with a well-recognized, innovative and broad product offering, long-standing relationships with dealers and municipal customers, and a growing installed base of over 6,000 vehicles[1],” states Tim Sullivan, President and CEO of REV Group. “It’s our long-term strategy to continue to grow this segment, as well as continue to establish REV Group as a leader in the innovation of fire apparatus and other emergency response vehicles.”
As of September 30, 2019, Spartan ER generated last twelve months (“LTM”) net revenues of $253.3 million and acquired Spartan ER backlog represents approximately 74 percent of anticipated calendar 2020 sales.
#1 by Brian on February 21, 2020 - 2:04 PM
Ferrara use to buy aerials from Smeal but they not build their own aerial and cabs unless on a commercial chassis
#2 by Mike C on February 21, 2020 - 7:23 AM
Jeremy R – The press release may mention Ultra Cabs but they are in fact on a KME cab. I don’t know how many Ferrara has made at this point but if you can find a picture of the new Rescue 5 you will see the characteristics of the KME cab with Ferrara branding. One thing you may have not known, some of the aerials being built for Ferrara are actually from KME now branded as a REV Group aerial.
#3 by Jeremy B. on February 6, 2020 - 12:02 PM
Mike C, they are not KME cabs on the new FDNY rescues. If you look at the press release from 2018 announcing the order to replace the 2010 order of rescues, they clearly specify it as being an Ultra cab.
#4 by Mike C on February 6, 2020 - 6:46 AM
Will Ferrara and Spartan start sourcing their cabs from E-One or KME?
#5 by Mike C on February 6, 2020 - 6:40 AM
Have you seen the new FDNY Rescues? Ferrara is utilizing a KME cab.
#6 by Matt on February 5, 2020 - 7:08 AM
The FDNY rescues like the FDNY aerials are built using Ferrara’s Ultra chassis/cab. This cab was developed well before the REV purchase to provide a cab option that would be able to meet FDNY specifications for a split-tilt cab.
#7 by CrabbyMilton on February 4, 2020 - 8:55 AM
They own quite a few of those lower cost bus builders of which most of them are used as hotel/airport shuttle types that are built on mostly FORD chassis. So some of the names have disappeared simply that there is too much overlap and duplication. While they don’t own SETRA, they market them which gives them a higher profile.
#8 by Mike C on February 4, 2020 - 8:23 AM
This could make for some very interesting combos! I see the new FDNY rescues are on a Ferrara chassis with a KME cab. How would you like to see an AerialCat on a Spartan chassis or a LTC aerial on a KME? I have a feeling one or more of these companies will be dissolved over time. The economy is currently strong. If the economy takes a dip, I can’t see all of these company within the REV Group able to be sustainable.
#9 by CrabbyMilton on February 4, 2020 - 6:48 AM
Heritage is interesting and most of us appreciate it since we’re all apparatus fans. However, a company that builds them can only profit if they build a good to outstanding product. Most of the time but not always, the customer won’t care who’s name is on the thing just so long as it works as prescribed and the company stands behind it.
In other words, don’t jerk customers around just because you think they won’t go elsewhere because they will. Just ask AMERICAN LaFRANCE.
#10 by Joel Hallstrom on February 3, 2020 - 10:25 PM
Any of the existing REV dealers will say that there is no upper end management of the competition between the three (now going to be four) product lines. The Ferrara guy is just as cut-throat as he ever was to the E-One and KME guys. I think as long as each division is making money and remaining profitable, they’ll be left to operate. Obviously there have been layoffs at KME and others, but I would expect that from any business that has inefficiencies.
The real fear is now they answer even more to a shareholder that is mainly profit driven. Pierce has suffered over this, their quality has declined considerably since a decade or so ago.
Spartan had not made a profit for many years on the emergency vehicle side, not sure how they have been doing lately. This will be interesting to see if they can be profitable under new ownership. Their other divisions always carried the emergency vehicle products. It appears REV did not buy the motorhome chassis and other products lines.
#11 by Bill Post on February 3, 2020 - 8:31 PM
It turns out that the founder of the Ward LaFrance Truck Company was a relative of the founder of the American LaFrance Fire Engine Company. American LaFrance was founded by Truckson LaFrance in 1873 and Ward LaFrance was founded by Addison Ward LaFrance in 1916. Addison worked at American LaFrance with his father and uncle prior to staring his own company.
#12 by John on February 3, 2020 - 8:29 PM
Bill, I believe the LaFrances were cousins. I don’t think there was any connection with the two companies except for the family one.
#13 by Bill Post on February 3, 2020 - 7:55 PM
I agree with you Mike C. I always wondered if there was a relationship between the American LaFrance Fire Engine Company and the Ward LaFrance Truck Company.
#14 by Mike C on February 3, 2020 - 3:21 PM
REV Group is becoming a dynasty. I don’t see this becoming a monopoly issue but I don’t like that the competition is becoming more and more limited. That’s one thing I always loved about the fire apparatus industry. There are so many builders out there that provide so many different features, options, and building methods.
#15 by Martin Nowak on February 3, 2020 - 2:59 PM
Business wise it makes sense for the companies to come together. Volkswagen group looks to be Acquiring Navistar.
#16 by CrabbyMilton on February 3, 2020 - 12:15 PM
Well I certainly never expected that one. REV already has 3 builders so I can’t help but think there may be some consolidation and one or more nameplates vanishing at some point. Perhaps they form a new name altogether who knows at this point.
KMEONE/SPARTAN
#17 by Bill Post on February 3, 2020 - 10:11 AM
So the REV Group seems to have become the General Motors of the fire engine, bus, and ambulance industry. As long as they keep each fire truck manufacturer separate so they maintain their own identity and product lines and remain competitive.
It is interesting that they own both Spartan/ERV, the company Chicago is leaving, and E-One, the company Chicago is going back to.
I’m sure they must be researching to prevent being charged with creating a monopoly now that they went from owning three to four major companies in the fire apparatus industry. I can’t help but wonder if they have their eyes on any other fire apparatus manufacturers. Perhaps if they attempt to purchase more they would make themselves vulnerable to an anti-trust suit. I also wonder how they stack up against Pierce and the Oshkosh Corporation in terms of total sales and revenues.