Bendix Commercial Vehicle Systems finalized the sale of subsidiary R.H. Sheppard Co. to an affiliate of Balmoral Funds, a California private equity firm. The transaction involves the entire Sheppard business, including branded products, production equipment, sales and service companies, and interests in joint ventures relating to sales and production.
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Also involved are about 680 employees across North America, including 600 at Sheppard's headquarters in Hanover, Penn., all of whom will stay with the company.
"The divestiture is a vital part of the BOOST program in place worldwide at Knorr-Bremse (the parent company of Bendix). It enables us to align our business with even greater focus and profitability," says Piotr Stroka, president, CEO and COO at Bendix. "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."
Kevin Stevick is the newly appointed CEO of R.H. Sheppard.
"We are thrilled to lead R.H. Sheppard into its next chapter as an independent company," he says. "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."
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Bendix develops and manufactures active safety, air management and braking system technologies for commercial vehicles. The company acquired Sheppard in 2020. Sheppard manufactures commercial vehicle steering systems in North America. Balmoral and Bendix will now begin a phased shift of operations and systems that is expected to take a year. Bendix will provide marketing, data and product integration support to Sheppard under a transition agreement between the two organizations.
"We are excited to partner with and support R.H. Sheppard as the leading U.S.-based provider of steering technologies for commercial vehicles," says Richard Levernier, board member of Sheppard and principal at Balmoral Funds. "As a standalone company, Sheppard now has the freedom and focus to chart its own path — investing in its employees, strengthening operations and delivering the reliable, high-quality solutions customers deserve. We look forward to providing management with the resources needed to secure the bright future we envision for the company, its employees, customers and all stakeholders."
Nicole Oreskovic, Bendix's vice president of sales and marketing, says Bendix's goal is to help mitigate and minimize upfront risks and complete the transfer with nominal impact to our customers and suppliers.
"The move allows Sheppard to continue to partner with the full range of OEMs on effective steering solutions across a range of braking systems," she says.
