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Smeal Acquisition

“Spartan Motors is prepared to lead the consolidation charge in the fire apparatus market as strategic opportunities present themselves, and this acquisition represents a deliberate and strategic decision to accelerate the turnaround of Spartan’s Emergency Response business unit.”

DARYL ADAMS, PRESIDENT & CEO, SPARTAN MOTORS

SPARTAN MOTORS TO

ACQUIRE SMEAL

On December 13, 2016, Spartan Motors announced it has entered into a definitive agreement to acquire its longtime cab and chassis customer, Smeal Fire apparatus. The acquisition will enable Spartan Motors to strengthen its Emergency Response segment, gain scale and geographic reach in an increasingly consolidating industry, and accelerate its Emergency Response business unit turnaround plan. The newly combined company will rank as a top-four North American fire apparatus manufacturer and boast a robust and respected portfolio of industry-leading products.

A MESSAGE FROM THE PRESIDENT

 

Adds approximately $70 million in annual revenue to Spartan’s Emergency Response segment (excludes $30 million of Spartan chassis sold to SMEAL)

Deal projected to be accretive to Spartan’s earnings in 2017

Initially financed through Spartan Motors’ recently amended $100 million line of credit

Brings together some of the best talent in the industry

Provides opportunity for increased synergies among network of shared customers, dealers, employees and operational leadership

Acquisition Resources

Press Release
Presentation
Fact Sheet

Safe Harbor Statement

FORWARD-LOOKING STATEMENTS

This fact sheet contains several forward-looking statements that are not historical facts, including statements concerning our business, strategic position, financial projections, financial strength, future plans, objectives, and the performance of our products and operations. These statements can be identified by words such as “believe,” “expect,” “intend,” “potential,” “future,” “may,” “will,” “should,” and similar expressions regarding future expectations. These forward-looking statements involve various known and unknown risks, uncertainties, and assumptions that are difficult to predict with regard to timing, extent, and likelihood. Therefore, actual performance and results may materially differ from what may be expressed or forecasted in such forward-looking statements. Factors that could contribute to these differences include operational and other complications that may arise affecting the implementation of our plans and business objectives; continued pressures caused by economic conditions and the pace and extent of the economic recovery; challenges that may arise in connection with the integration of new businesses or assets we acquire or the disposition of assets; restructuring of our operations, and/or our expansion into new geographic markets; issues unique to government contracting, such as competitive bidding processes, qualification requirements, and delays or changes in funding; disruptions within our dealer network; changes in our relationships with major customers, suppliers, or other business partners, including Isuzu; changes in the demand or supply of products within our markets or raw materials needed to manufacture those products; and changes in laws and regulations affecting our business. Other factors that could affect outcomes are set forth in our Annual Report on Form 10-K and other filings we make with the Securities and Exchange Commission (SEC), which are available at www.sec.gov or our website. All forward-looking statements in this release are qualified by this paragraph. Investors should not place undue reliance on forward-looking statements in this release, whether as a result of new information, future events, or otherwise.