Bendix Commercial Vehicle Systems recently finalized the sale of subsidiary R.H. Sheppard to an affiliate of Balmoral Funds, a Los Angeles-based private equity firm.
The transaction encompasses the entire Sheppard business, including Sheppard’s branded products, production equipment, sales and service companies, and interests in joint ventures relating to sales and production, Bendix reported.
The transition involves approximately 680 employees across North America, including 600 at Sheppard’s longtime headquarters in Hanover, Pennsylvania, all of whom will continue as employees of R.H. Sheppard.
“We are thrilled to lead R.H. Sheppard into its next chapter as an independent company,” Newly appointed CEO Kevin Stevick said in a news release. “Sheppard has built a legacy of trust by delivering reliable, high-quality solutions that our customers depend on. As we move forward, our first priority is to uphold and strengthen that reliability, ensuring we continue to meet and exceed customer expectations. At the same time, we’re committed to investing in the business—empowering our employees, enhancing operations, and driving innovation to unlock Sheppard’s full potential.
“Together, we will build on Sheppard’s strong foundation and position the company for long-term success.”
The divestiture reinforces Bendix’s desire for increased focus on its core competencies—in particular, braking systems, vehicle dynamics, air and energy management, and driver assistance systems, all essential parts of Bendix’s portfolio of integrated solutions. Balmoral will continue to offer Sheppard and its integration with Bendix ADAS and brake systems.
“The divestiture is a vital part of the BOOST program in place worldwide at Knorr-Bremse. It enables us to align our business with even greater focus and profitability,” said Piotr Sroka, Bendix president, CEO, and chief operating officer. “While Sheppard is one of the leaders in safety-critical steering, we believe the operation can grow faster and be better aligned with market needs under a new owner who can provide greater expertise in deeply vertically integrated operations.”
Bendix acquired the Sheppard system and operations in February 2020. Sheppard is one of the leading manufacturers of commercial vehicle steering systems in the North American market. The company develops and manufactures commercial vehicle steering systems, as well as adjacent products and services.
Effective with the sale’s close, Bendix and Balmoral will begin a detailed, phased shift of operations and systems, the companies said. The full changeover is expected to be completed over a period of up to one year.
“While it will initially be business as usual, our transition goal is to help mitigate and minimize upfront risks, establish and maintain momentum, and complete an intelligent transfer with nominal impact to our customers and our suppliers,” said Nicole Oreskovic, Bendix vice president of sales and marketing.
“The move allows Sheppard to continue to partner with the full range of OEMs on effective steering solutions across a range of braking systems.”