The start of the new year slowed the acquisition pace in trucking's dealer, aftermarket and supplier sectors as only a few deals were finalized.
Notable, however, were the announcements by two major suppliers of their intent to sell segments of their business and exit the trucking sector.
That action mirrored what we saw over the last year with Dana and Allison, as the former has sold its off-highway business to the latter for $2.7 billion. The move was finalized on Jan. 2. "We are excited to welcome our new colleagues from Dana Incorporated's Off-Highway Drive & Motion Systems business to Allison," said David Graziosi, chairman, president and CEO of Allison. "Together, we have an expanded market reach and broader portfolio of high-quality and reliable products, creating a global platform that will continue to deliver strong financial performance."
The next acquisition was made by Ryder, which on Jan. 6, announced its purchase of Truck Service Depot, an Atlanta-based mobile service operation. "With Truck Service Depot's strong presence in Georgia and complementary mobile maintenance services in a growth market for Ryder, we are enhancing our ability to further offer flexible, rapid maintenance solutions to fleets across this growing freight corridor," said Tom Havens, president of fleet management solutions at Ryder.
In the divestiture space, First Brands announced in January its plans to market and sell its business, accelerating its emergence from Chapter 11. “Launching the marketing process represents a decisive step toward positioning our brands for long-term stability under new ownership,” said Charles Moore, interim CEO at First Brands Group. “Over the past several months, we have gained clarity on the significant value across the First Brands portfolio and the strong growth potential of our core business lines in the aftermarket industry.”
Next was Alliant Power announcing on Jan. 21, its purchase of Capital Reman Exchange, a reman operation of engines and components based in Denver. “Capital Reman has built an incredible reputation for quality and reliability, and an amazing team with deep capabilities in remanufacturing,” said Houman Kashanipour (HK), CEO of Alliant Power. “Together, we will continue to raise the standard for engine solutions, helping our customers keep their fleets running efficiently and cost-effectively.”
Then it was announced on Jan. 26, that Eaton will exit the mobility space, spinning off that segment into a publicly traded company by the end of 2027. The company states it will focus its operations around the electrical and aerospace industries. "We are incredibly proud of what our Mobility team has built and believe that now is the right time to separate that business," said Paulo Ruiz, Eaton's CEO "As an independent company, Mobility will be able to build on its strong foundation as a leading supplier across the globe."
The month closed not with an acquisition but an investment, as Rubicon Technology Partners, a middle-market private equity firm, announced its investment in Procede Software to help grow the latter’s capabilities in the industry. “Procede Software has the mix of innovative product leadership, best-in-class talent, and customer-obsessed culture that we seek out at Rubicon,” said Ben Falloon, principal at Rubicon. “We’re incredibly grateful and excited to partner with Larry and the entire Procede team in their next chapter of growth and innovation.”
