Wabco has signed an agreement to acquire privately-held RH Sheppard, a supplier of commercial vehicle technologies including vehicle steering capabilities, headquartered in Hanover, Pennsylvania.
The transaction is subject to customary US regulatory clearance and is expected to close by the end of the third quarter this year.
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Wabco’s purchase price is US$145m, subject to customary adjustments. Sheppard had sales of US$130m in 2016.
A Tier 1 supplier in North America, Sheppard offers a suite of power-steering gears for heavy-duty commercial and speciality vehicles.
Employing more than 900 people, Sheppard also provides precision engineered engine pumps and remanufacturing services.
In addition, the company is vertically integrated with its own manufacturing and foundry capabilities, which Wabco expects to use for some of its products.
Furthermore, through an existing exclusivity agreement with a unnamed supplier of steering actuation controls, Sheppard will be able to offer a solution enabling active steering control for commercial vehicle manufacturers in North America.
“This acquisition represents another milestone as Wabco advances toward enabling self-driving commercial vehicles,” said Wabco chairman and CEO Jacques Esculier.
“We have a clear line of sight on the fundamental technologies – such as active steering, active braking, electronic stability control and other advanced driver assistance systems – which will enable significant intermediary steps on our industry’s path to realise fully autonomous driving.”
Full dynamic control of commercial vehicles – lateral and longitudinal – is necessary to progressively achieve the industry’s vision of autonomous driving.
The acquisition of Sheppard is a capability towards providing lateral control through active steering, which is a cornerstone complementing Wabco’s technologies in longitudinal control through active braking, stability and suspension controls.
Sheppard has been leveraging its technologies to develop products adapted for regions outside North America. Sheppard already manufactures and sells these products through a joint venture in China and will use Wabco’s global network to reach other regions.
