Western Star sells UK truck division to MAN

KELOWNA, B.C. (Jan. 31, 2000) — Western Star Trucks Holdings Ltd. said it has sold its British truck making subsidiary ERF to German truck and machinery maker MAN AG for about $156 million plus $108 million in debt.

It a separate transaction, Western Star will purchase from MAN’s truck divison the import companies in Australia and New Zealand for MAN trucks and buses. MAN Australia’s dealer network has 30 parts and service dealers in Australia and 12 in New Zealand with a product range including Class 5 to 8 cab-over trucks, bus and coach chassis, intra-city buses and inter-state coaches.

In a statement, Western Star said the European heavy-duty truck industry would continue to consolidate, and that ERF would be better positioned to benefit from synergies with MAN.

MAN said the acquisition would double its UK market share in heavy trucks to 16%.