Milwaukee, Wisconsin – REV Group Inc., maker of E-one and other firetruck brands, is buying the emergency vehicles business of competitor Spartan Motors Inc. The $55 million sale will consolidate portions of the emergency service business with REV and free up resources at Spartan that the company plans to use on electric vehicles (EVs) and autonomous vehicles (AVs).
Spartan Emergency Response and its brands, Spartan Fire Apparatus and Chassis, Smeal Fire Apparatus, Ladder Tower (LCT), and UST, will become part of REV’s Fire & Emergency segment.
REV Group President and CEO Tim Sullivan said the purchase gives REV an installed base of 6,000 users, adding, “It’s our long-term strategy to continue to grow this segment, as well as continue to establish REV Group as a leader in the innovation of fire apparatus and other emergency response vehicles.”
Spartan’s ER business unit had revenue of approximately $253.3 million for the 12 months ended September 30, 2019. As part of the deal, Spartan will change its name soon. REV Group has licensed the Spartan name and logo back to the Spartan for use in the Spartan's RV chassis business.
“The divestiture of the ER business unit will give us the speed and flexibility needed to further focus on accelerating growth and profitability in our commercial, fleet, delivery, and specialty vehicles markets where we see the biggest opportunity to generate higher returns,” said Spartan President and CEO Daryl Adams. “By freeing up additional resources and capital to better serve our target markets and make additional strategic investments, we can continue to evolve to meet the needs of our customers and provide long-term value to our shareholders.”
He added that “e-commerce, electrification, and autonomous technologies are driving dramatic change in the industry, and this action positions us to continue to provide leading solutions for our customers.”