Bendix Sells Steering, Pump Specialist R.H. Sheppard
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A private equity firm bought steering and engine pump manufacturer R.H. Sheppard from Bendix Commercial Vehicle Systems for an undisclosed sum, the brake and active safety software specialist said.
Hanover, Pa.-based R.H. Sheppard employs 680 staff, including 600 in its hometown, and will now be owned by an affiliate of Los Angeles-based Balmoral Funds. The new owners said all current employees would be retained.
“We are thrilled to lead R.H. Sheppard into its next chapter as an independent company,” said newly appointed CEO Kevin Stevick, who previously was president and CEO of Steel Craft Corp. Hartford, Conn.-based Steel Craft is a metal manufacturing company.
“Sheppard has built a legacy of trust by delivering reliable, high-quality solutions that our customers depend on,” he said. “As we move forward, our first priority is to uphold and strengthen that reliability, ensuring we continue to meet and exceed customer expectations.”
Bendix today announced the company finalized the sale of its wholly owned subsidiary, R.H. Sheppard Co., Inc. to an affiliate of Balmoral Funds LLC (Balmoral), a Los Angeles-based private equity firm: https://t.co/pCGduOBZ4T — Bendix (@Bendix_CVS) December 20, 2024
Customers will continue to be able to obtain a Sheppard steering system integrated with Bendix’s advanced driver assistance systems and brake systems, the companies said.
Bendix acquired Sheppard in February 2020 from Wabco Holdings for $149.5 million.
Wabco sold Sheppard — which it bought for $145 million in August 2017 — as a result of its own $7.1 billion takeover by ZF Friedrichshafen, which already had a steering division. The Sheppard deal was subject to ZF’s Wabco takeover being finalized.
Bendix parent company Knorr-Bremse bought Sheppard to boost its position in steering systems for commercial vehicles, particularly autonomous trucks. Knorr-Bremse in 2019 bought the commercial vehicle steering division of Hitachi Automotive Systems in Japan.
The sale of Sheppard almost five years later is part of a push by Bendix to focus on what it sees as its core products — braking systems, vehicle dynamics, air and energy management, and driver assistance systems.
Sroka
“The divestiture is a vital part of the BOOST program in place worldwide at Knorr-Bremse. It enables us to align our business with even greater focus and profitability,” Bendix CEO and Chief Operating Officer Piotr Sroka said.
“While Sheppard is one of the leaders in safety-critical steering, we believe the operation can grow faster and be better aligned with market needs under a new owner who can provide greater expertise in deeply vertically integrated operations,” he added.
Bendix’s core braking system unit underwent a tough last couple of months of 2024, with around half a million trucks recalled in the fourth quarter due to potential antilock braking system, active cruise control and collision mitigation system problems.
Volvo Trucks North America, Mack Trucks, Kenworth, Peterbilt and International trucks fitted with Bendix’s EC80 electronic control units were recalled for repairs.
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