Dejana Truck to be acquired for $206 million

Dejana Truck and Utility Equipment, a closely held Kings Park maker of specialized truck bodies that are fitted on chassis made by Ford and other automakers, has agreed to be acquired by Milwaukee-based Douglas Dynamics Inc. for $206 million.

Dejana employs about 500 people in five states and sells its trucks to utility, energy, telecommunications and transportation companies.

The 59-year-old Long Island company posted net sales of $145 million over the 12 months ended March 31.

Peter Dejana started the company in 1957 as a service station in Huntington. His chance meeting with a New York Telephone Co. executive led to him servicing that company’s trucks.

Dejana maintains seven facilities with 240,000 square feet of work space on the East Coast: two on Long Island, in Kings Park and Huntington; plus locations in Smithfield, Rhode Island; Cinnaminson, New Jersey; Red Hill, Pennsylvania, and two in Baltimore.

The acquisition, announced Thursday, is subject to regulatory approvals and is expected to close during the third quarter of 2016.

“The addition . . . will significantly strengthen our position as a premier manufacturer and up-fitter of vehicle attachments and equipment,” James L. Janik, president and chief executive of Douglas Dynamics, said in a statement. “The deal provides a new complementary portfolio of services and products to drive deeper customer relationships, and expands our geographic footprint in the Eastern U.S.”

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Once the deal is completed, the Dejana management team, including its president, Andrew Dejana, son of the founder, will continue to lead Dejana.

By Ken Schachter

kenneth.schachter@newsday.comkschach

Ken Schachter covers corporate news, including technology and aerospace, and other business topics for Newsday. He has also worked at The Miami Herald and The Jerusalem Post.