Looking to focus on its Delivery and Specialty Vehicle segments, Spartan Motors (SPAR +4.5%) has divested its Emergency Response business to REV Group (REVG +1.1%), which paid $55M in cash (subject to adjustments) for the unit.
“The divestiture of the ER business unit will give us the speed and flexibility needed to further focus on accelerating growth and profitability in our commercial, fleet, delivery, and specialty vehicles markets where we see the biggest opportunity to generate higher returns,” said CEO Daryl Adams.
As part of the transaction, REVG purchased the rights to the “Spartan” brand name. Accordingly, Spartan Motors will be changing its corporate name in the coming months, subject to shareholder approval.
Source: M A News on Seeking Alpha