WAKARUSA -- Utilimaster Corp., headquartered in Wakarusa, is being sold to Spartan Motors Inc., for about $45 million in cash.
Announced today, Spartan is purchasing the specialty vehicle manufacturer from John Hancock Life Insurance Co. The acquisition is expected to add about $105 million in annualized revenues to Spartan, based in Charlotte, Mich.
Utilimaster has about 550 employees and more than 550,000-square-feet of manufacturing space at its campus along S.R. 19. Founded in 1973, it makes walk-in vans and commercial truck bodies for use in the delivery and service markets.
In a press release, Utilimaster president and chief executive officer Mike Kitson said together the two companies will be able to penetrate new markets.
"Spartan and Utilimaster share a similar business model, complementary team culture and financial discipline -- focused on return on invested capital -- that bode well for our continued momentum in the marketplace," Kitson said.
Spartan Motors designs, engineers and manufactures specialty chassis and vehicles for several markets including the recreational vehicle industry. It employs about 1,000 workers at facilities in Michigan, Pennsylvania, South Carolina, South Dakota and Texas and it reported revenues of $844.4 million in 2008.