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Spartan Motors adds Royal Truck Body to family

Sept. 12, 2019
Company says acquisition expands its West Coast, Southwest reach with 6 additional facilities

Spartan Motors, a specialty vehicle manufacturer for the commercial vehicle industry, recently purchased Royal Truck Body, a California-based designer, manufacturer and installer of service truck bodies and accessories.

Royal joins Spartan’s Specialty Chassis and Vehicles (SCV) business unit and, in recognition of the strength of the brand, will continue to go to market under the Royal Truck Body name, according to Spartan.

The company said its latest acquisition will result in the achievement of three key goals: EBITDA margin growth, increased revenue and geographic expansion that delivers coast-to-coast manufacturing and distribution.

“This is an exciting day for Spartan,” said Daryl Adams, president and chief executive officer of Spartan. “Our acquisition of Royal Truck Body marks the continued execution of our strategic plan and delivers on the promise of nationwide expansion to the benefit of our customers, suppliers, team members and our shareholders.”

The purchase of Royal expands Spartan Motors’ manufacturing operations into Southern and Northern California, and additional West Coast markets, advancing its US footprint strategy with six additional operating facilities in California, Arizona and Texas.

Spartan said it will utilize Royal’s existing production facility in Carson CA and its five other locations throughout the Sun Belt to build and distribute commercial trucks more efficiently and cost effectively to West Coast customers across its business units.

Spartan expects the transaction to be accretive to earnings on an annualized basis in 2020.

“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,” Adams said. “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.”

Royal manufactures and assembles truck body options for various trades, service utility truck bodies, stake body trucks, service vans, contractor trucks and dump trucks that Spartan said complement its Work-Driven Design vocational solutions across Classes 1-7.

Royal’s product set also builds on the momentum of Spartan’s recent General Truck Body acquisition, allowing Spartan’s expanded West Coast operations to support tradespeople and fleets of all sizes, according to the company.

“I’m thrilled that Spartan represents such a close fit with our company values and culture, including hard work, accountability and customer satisfaction,” said Dudley DeZonia, former president of Royal Truck Body.

“Spartan has a compelling vision and success story, and I am confident the future will be incredibly bright for Spartan and the Royal Truck Body brand.” 

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