Lincoln Partners Advises ST Engineering in Announced Acquisition of Specialized Vehicles Corporation
August 01, 2005 - Chicago, IL - Lincoln Partners announced that it advised Singapore Technologies Engineering Ltd (ST Engineering) and its U.S. subsidiary, Vision Technologies Land Systems, Inc (VTLS), in the announced acquisition of Specialized Vehicles Corporation (SVC) from H.I.G. Cedar, Inc (HIG), an affiliate of HIG Capital, LLC, for a total cash consideration of approximately US$52.5m. The transaction is subject to regulatory approvals and is expected to close within 90 days.
The acquisition is in line with ST Engineering's strategy to grow the commercial automotive business of its Land Systems sector and to become a global specialty vehicle player. It will leverage on the sector's experience and expertise in the automotive industry and its growing network. This includes China, where it has a construction vehicle manufacturing facility in Beijing and is setting up automotive repair centres in Guangzhou and Zhejiang.
SVC is the leading manufacturer in North America for specialized truck bodies and trailers that services the multi-stop food and beverage service distributors and municipal emergency rescue departments. Its two divisions, Hackney and Kidron, specialize in beverage truck bodies and trailers, emergency rescue bodies and trailers, special application truck bodies and multi-temperature refrigerated truck bodies and trailers. SVC counts among its US customers major fleet and truck leasing operators, foodservice, beer, soft drink distributors, and municipal authorities like the West Virginia Office of Emergency Services and the New York City Fire Department. SVC's turnover for the first three quarters of fiscal year 2005 (from Sept 04 to May 05) was US$88.9m. Annual turnover for FY2005 ending Aug 05 is forecasted to be about US$120m.
"ST Engineering provides Specialized Vehicles Corporation the financial strength, the cost, purchasing and engineering expertise which we can leverage to be the market / product leader in the truck segments where we compete. This is an important step towards the realization of our business strategy of being the #1 supplier of customer value in the products we design and produce, and in the niche markets we serve. Most importantly, together with ST Engineering, SVC would be positioned to better serve the needs of our customers in North America with a wider range of products, as well as grow internationally," said Frank A. Papa, CEO, Specialized Vehicles Corporation.
"The addition of SVC to the ST Engineering family expands our presence in the US market and is a first step towards our becoming a major commercial specialty vehicle player in the key North American and Asian marketplace. ST Engineering is confident that purchasing and engineering synergies between the two organisations will enable SVC to continue providing innovative, reliable and cost effective solutions to her existing and new customers. With ST Engineering's established marketing network and business presence in Asia, we can help SVC to grow in the region," said TAN Pheng Hock, President & CEO, ST Engineering.
About Lincoln Partners
Lincoln Partners is a leading middle market investment bank specializing in mergers & acquisition services and private capital raising. Headquartered in Chicago and offering a depth of experience in a number of industries, Lincoln Partners ranks as one of the five most active middle market advisory firms in the United States. Its' clients include major publicly traded companies, well-respected private equity firms and prominent entrepreneurial businesses. The firm distinguishes itself by committing hands-on senior banker attention, in-depth industry expertise and international resources to every transaction, thereby producing outstanding results for its clients.
