Vision Technologies Land Systems Inc. a subsidiary of Singapore Technologies Engineering Ltd (ST Engineering) has entered into an agreement with HIG, the current owner, to purchase Specialized Vehicles Corp (SVC), parent company of Kidron and Hackney. The transaction is subject to regulatory approvals and other closing conditions, and is expected to close within 90 days.
ST Engineering is comprised of four core businesses: aerospace, electronics, marine and land systems. The company has revenue of $1.8 billion with 12,000 employees worldwide in 15 countries.
SVC is a leading manufacturer in North America for specialized truck bodies and trailers that services the multi-stop food and beverage service distributors and municipal emergency rescue departments. Its two divisions, Hackney and Kidron, specialize in beverage truck bodies and trailers, emergency rescue bodies and trailers, special application truck bodies and multi-temperature refrigerated truck bodies and trailers. SVC counts among its U S customers major fleet and truck leasing operators, foodservice, beer, soft drink distributors, and municipal authorities.
The acquisition is in line with ST Engineering's strategy to grow the commercial automotive business of its Land Systems sector and to become a global specialty vehicle player. It will leverage on the sector's experience and expertise in the automotive industry and its growing network.
"Vision Technologies Systems provides Specialized Vehicles Corporation the financial strength, the cost, purchasing and engineering expertise which we can leverage to be the market/product leader in the truck segments where we compete,” says Frank A Papa, chief executive officer of SVC. “This is an important step towards the realization of our business strategy of being the number one supplier of customer value in the products we design and produce, and in the niche markets we serve. Most importantly, together with Vision Technologies Systems, SVC would be positioned to better serve the needs of our customers in North America with a wider range of products, as well as grow internationally."
"SVC will become even greater because of the synergies that exist among SVC, Vision Technologies Systems and ST Engineering,” says John Coburn, VT Systems chairman and chief executive officer. “SVC's management, which has performed well, will be able to draw on expanded resources and serve its North American customers even better."
The companies do not expect the transaction to affect SVC’s customers, operations or employees.