08 Apr 05. Stewart & Stevenson Services Inc. (NYSE: SVC) announced today that it has reached a definitive agreement to acquired the outstanding shares of Automotive Technik Holdings Limited, (“ATL”), the United Kingdom-based manufacturer of the Pinzgauer light utility vehicle, for £25m approximately US$47.2m (Based on today’s exchange rate)in cash and deferred consideration. Automotive Technik will become part of Stewart & Stevenson’s Tactical Vehicle Systems (TVS) division, which currently already includes the FMTV military support vehicle.
The Pinzgauer vehicle is generally regarded as the most advanced and mobile light utility vehicle in its class with an installed base of over 30,000 vehicles. ATL began manufacturing the vehicle in the late 1990s in Guildford, England. In addition to the standard 4 X 4 and a 6 X 6 configuration, ATL recently added a new Pinzgauer X-M (X-treme Mobility) model and an armored 6 X 6 variant. ATL has won major contracts in competitive tenders from the UK Ministry of Defence MoD and the New Zealand MoD, and is involved in a number of additional programs worldwide.
In addition to the Pinzgauer manufacturing operations, ATL has a division that specializes in development, test and applications engineering activities and a a specialist equipment fabrication and body building operation. Both the engineering and fabrication units currently support the Pinzgauer manufacturing operations as well as external military and civilian customers.
“Stewart & Stevenson is very pleased to add Automotive Technik Holdings Limited and the Pinzgauer vehicle to our product offering,” said Denny Dellinger, President of Stewart & Stevenson’s Tactical Vehicle Systems division. “, which includes the Family of Medium Tactical Vehicles (FMTV) we build for the U.S. Army. The Pinzgauer is a well proven and capable platform in the light tactical vehicle range with an established international market presence. To which, together in combination with our Family of Medium Tactical Vehicles (FMTV)FMTV in the medium to heavy range, the Pinzgauer will broaden and enhance gives Stewart & Stevenson’s portfolio of a broad product selection of world-class tactical vehicles that we design and produce for customers around the world,” stated Denny Dellinger, President of TVS. Furthermore, we look forward to leveraging ATL’s engineering and fabrication capabilities across our entire family of tactical vehicles.”
Automotive Technik’s Chief Executive, Alan Stanley, says, “The future direction and success of ATL and the Pinzgauer is commercially best served as part of the Stewart & Stevenson family of companies. The opportunity to move the company forward by integrating ATL it within Stewart & Stevenson, one of the world’s leading military vehicle manufacturers, and benefit from their operational and financial strength, provide our company with a wide array of unique opportunities for the business that will continue to build upon the important progress we have made.”
While Automotive Technik’s Pinzgauer manufacturing operation is the primary focus of the deal, Stewart & Stevenson will also acquire Automotive Technik Engineering, a division which specialises in development, test and applications engineering activities – and Automotive Technik Fabrications, the Fareham based specialist equipment fabrication and body building operation. Both divisions currently serve the group’s Pinzgauer manufacturing operations as well as external military and civilian customers.
Jeremy Furniss and Jonathan Seal of Livingstone Guarantee LLP, Andrew Holt of DLA Piper Rudnick Gray Cary UK LLP and Kevin Cook and Lesley Wills of BDO Stoy Hayward LLP advised the shareholders of ATH on the sale.