By Dan McCue
Staff Writer

Has American LaFrance finally stepped back from the precipice? For years, the local emergency vehicle manufacturer has been talked about as if it were in need of an industrial hospice, but its fortunes appear to have turned a corner since being acquired by Patriarch Partners, a New York-based investment company.

Lynn Tilton, Patriarch’s founder, has talked often since acquiring the company of her affinity for emergency first responders and the personal impact the terrorist attacks of Sept. 11 have had on her.

“It seemed like every year, you’d hear American LaFrance was moving or was going out of business, and frankly, investment in the company from previous owners just wasn’t there,” said American LaFrance CEO John Stevenson.

In addition to Patriarch Partners’ $35-million commitment to build American LaFrance’s new headquarters and manufacturing facilities, Stevenson said an additional $15 million is being invested in information technology equipment, $5 million is being spent on new tooling and equipment, and another $5 million is being spent on advanced emissions systems.

“We’re in a very unique situation right now in that we are, in fact, creating a company with its own independent business systems that didn’t exist before, while also running a company with current orders and commitments,” Stevenson said. “At some point, those two efforts will merge and what you’ll see is a much healthier, much more viable and much more exciting company.”

While its core business will be in creating a wide range of emergency and government service vehicles—everything from fire engines to garbage trucks—Stevenson said the Patriarch Partners involvement would also help it expand its presence in other markets, including fire boats, in conjunction with Brunswick Commercial & Government Products, and police helicopters, with McDonnell Douglas.

“What Patriarch, through its various holdings, provides us is a platform for growth,” Stevenson said.

At the same time, Stevenson said he anticipates American LaFrance’s supply chain to become much more localized than it was when owned by the West Coast-based Freightliner subsidiary of DaimlerChrysler.

“During that period, many of our suppliers where headquartered near Freightliner,” he said. “As we move forward I expect we’ll be building more and more of an East Coast supply chain, with some offshore components, and looking to more local suppliers.”

“There will be opportunities for local suppliers to work with American LaFrance,” he said for emphasis.

Dan McCue is a staff writer for the Business Journal. E-mail him at dmccue@charlestonbusiness.com.

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