Knorr-Bremse recently agreed to purchase RH Sheppard, which manufactures steering systems for commercial vehicles in North America, from WABCO Holdings for $149.5 million.
The transaction will be conducted through Bendix Commercial Vehicle Systems, a Knorr-Bremse subsidiary. The company said the acquisition further broadens its international position in the steering systems market after expanding in Asia with the 2019 addition of Hitachi Automotive Systems’ CV steering division in Japan.
WABCO is selling Sheppard in connection with the proposed takeover of WABCO by ZF Friedrichshafen AG, the companies maintained. The deal, subject to closing conditions and regulatory approvals, and contingent upon the closing of the ZF acquisition of WABCO, is expected to close in the first half of 2020.
“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,” said Peter Laier, a member of Knorr-Bremse’s executive board. “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.”
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 company said. 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.
In 2018, Sheppard generated sales of around $146 million and employed around 800 people.
“Sheppard is an ideal addition to the product portfolio,” said Michael J Hawthorne, Bendix president and CEO. “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.”