Bendix Divests R.H. Sheppard Operations To An Affiliate Of Balmoral Funds

The transition involves approximately 680 employees across North America, including 600 at Sheppard’s longtime headquarters in Hanover, PA. (Photo courtesy of Bendix)

Bendix Commercial Vehicle Systems LLC (Bendix), a North American subsidiary of Knorr-Bremse, has announced the company finalized the sale of its wholly owned subsidiary, R.H. Sheppard Co., Inc., to an affiliate of Balmoral Funds LLC (Balmoral), 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. The transition involves approximately 680 employees across North America, including 600 at Sheppard’s longtime headquarters in Hanover, PA, all of whom will continue as employees of R.H. Sheppard Co., Inc.

“The divestiture reinforces Bendix’s continued desire for increased focus on its core competencies — in particular, braking systems, vehicle dynamics, air and energy management, and innovative driver assistance systems — essential parts of Bendix’s portfolio of integrated solutions,” according to a press release. “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,” Piotr Sroka, president, CEO, and chief operating officer at Bendix, said. “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. Effective with the sale close, Bendix and Balmoral will begin a detailed, phased shift of operations and systems. The full changeover is expected to be completed over a period of up to one year. During this time, Bendix will provide marketing, data, and product integration support to Sheppard under a transition agreement between the two organizations. Visit bendix.com.