Brazilian bus manufacturer Marcopolo will buy about 19.99% stake in Canada-based New Flyer Industries with an investment of CAD116m ($116.7m).
The secured investment will be used by New Flyer in its future development and diversification initiatives under a strategic plan and for general corporate purposes.
New Flyer president and CEO Paul Soubry said, "This investment will allow us to be more aggressive in executing our growth, diversification and new product development agenda while giving us timing flexibility in drawing the second portion of the funds to ensure that the additional dividend requirements can be better matched to cash flows generated from the use of those funds."
Marcopolo CEO José Rubens de la Rosa said: "The investment is in line with Marcopolo's growth strategy and marks its definitive entry into the U.S. and Canadian markets, two of the most sophisticated and advanced in the world."
Under the deal, Marcopolo will hold the shares for at least two years, while not acquiring any additional shares of the company.
