MUNICH, Germany — Knorr-Bremse, the global market leader for braking and other systems for rail and commercial vehicles, strengthened its position in steering systems for commercial vehicles and signed an agreement on Jan. 30 to acquire R.H. Sheppard Co., Inc., USA (“Sheppard”). Closing is expected in the first half of 2020, the companies announced.
Brake manufacturer Bendix is an indirect subsidiary of Knorr-Bremse AG, which is a leading global supplier of braking systems and other safety-critical rail and commercial vehicle systems. The closing of the acquisition is subject to closing conditions and regulatory approvals. It is also contingent on the closing of the ZF acquisition of WABCO.
The move follows the spring 2019 acquisition of the commercial vehicle steering division of Hitachi Automotive Systems in Japan by Knorr-Bremse. That helps cement the company’s position as a global supplier of integrated steering and braking systems as a basis for driver assistance systems (DAS) and highly automated driving (HAD).
Sheppard is one of the leading manufacturers of steering systems for commercial vehicles on the North American market.
Knorr-Bremse is acquiring Sheppard from WABCO Holdings Inc., USA (“WABCO”), which is selling Sheppard in connection with the proposed takeover of WABCO by ZF Friedrichshafen AG (“ZF”). The agreed purchase price was $149.5 million.
“For Knorr-Bremse the acquisition of Sheppard is another important step in our strategy to become a global manufacturer of steering systems for commercial vehicles. With integrated steering and braking systems for commercial vehicles, we can realize globally expanded functions in driver assistance and automated driving together with our customers and leverage cost potential through system integration,” explained Dr. Peter Laier, a member of the Executive Board of Knorr-Bremse AG that is responsible for the Commercial Vehicle Systems division.
“For Bendix and the North American marketplace in particular, this is a strong combination of two market leaders, and an ideal addition to our evolving product and solutions portfolio,” said Michael J. Hawthorne, Bendix president and CEO. “The Sheppard product portfolio will further enable us to better respond to the requirements of North American customers in the different market segments and to offer tailor-made system solutions for the full range North American commercial vehicles.”
Sheppard’s expertise brings optimal base for automated driving
Complete control over the transverse and longitudinal forces of a commercial vehicle is a necessary prerequisite for system solutions in driver assistance and automated driving solutions. The combination of Sheppard’s expertise in the field of recirculating ball steering systems (RCB) and Knorr-Bremse’s global system know-how, form an optimal basis for the introduction of torque overlay steering systems (TOS) and functions of driver assistance and automated driving, particularly in the North American market.
The acquisition will be carried out by Bendix Commercial Vehicle Systems, LLC., Elyria, USA, an indirect subsidiary of Knorr-Bremse AG and part of the Commercial Vehicle Systems Division. In 2018, Sheppard generated sales of around $146 million and employed around 800 people.
Customized system solutions for North American trucks and buses
“Sheppard is an ideal addition to the product portfolio. As a leading commercial vehicle supplier in North America, Bendix will be even better able to respond to the requirements of North American customers in the different market segments. This is how tailor-made system solutions for North American trucks and buses become possible,” said Michael J. Hawthorne, Bendix president & CEO.
About R.H. Sheppard Co., Inc.
Sheppard was founded in 1937 and manufactures components for the global commercial vehicle and transportation industries. Sheppard develops and manufactures steering systems for commercial vehicles, and related products and services to the highest quality standards.
About Knorr-Bremse
Knorr-Bremse (ISIN: DE000KBX1006, ticker symbol: KBX) is the global market leader for braking and other rail and commercial vehicle systems. Knorr-Bremse’s products make a decisive contribution to greater safety and energy efficiency on rail tracks and roads around the world. About 28,500 employees at over 100 sites in more than 30 countries use their skills and motivation to satisfy customers worldwide with products and services. In 2018, Knorr-Bremse’s two divisions together generated sales of 6.6 billion euros.
For more than 115 years, the company has been the industry innovator, driving innovation in mobility and transportation technologies with an edge in connected system solutions. Knorr-Bremse is one of Germany’s most successful industrial companies, and profits from the key global megatrends: urbanization, eco-efficiency, digitization and automated driving. www.knorr-bremse.com
