CHARLOTTE — Spartan Motors Inc. continues to build its presence on the West Coast with its second acquisition of a California company in three months.
The Charlotte-base Spartan Motors (Nasdaq: SPAR) has acquired Carson, Calif.-based Royal Truck Body, a designer, manufacturer and installer of service truck bodies, according to a statement. The company will continue to operate under the Royal Truck Body brand and will be part of Spartan Motors’ Specialty Chassis and Vehicles unit.
Royal Truck Body makes truck bodies for a range of trades, service truck bodies, stake truck bodies, service vans, contractor trucks and dump trucks. It operates a 200,000-square-foot manufacturing facility in Paramount, Calif., according to its website. The company also maintains manufacturing and assembly space at other locations in California and in Arizona and Texas.
According to a statement, Spartan Motors pursued the deal as part of its strategic plan to drive EBITDA margin, increased revenue and geographic expansion.
“As we welcome Royal to the Spartan family and work to grow our combined business, we see many opportunities to further our value proposition of additional expansion into the trades, fleet, and last mile delivery categories nationwide,” Spartan President and CEO Daryl Adams stated. “Our long-term strategy is to broaden our geographic footprint with increased capabilities for each regional location to offer a comprehensive suite of products and services.”
Terms of the deal were undisclosed, but Spartan Motors said it expected the acquisition will be accretive to earnings on an annual basis in 2020.
Spartan Motors was advised on the deal by Grosse Pointe, Mich.-based Donnelly Penman & Partners Inc. and the Grand Rapids-based law firm of Varnum LLP.
The deal follows the June acquisition of General Truck Body Inc., a maker of commercial truck bodies, as MiBiz previously reported.