Heavy-duty transit bus manufacturer New Flyer has completed the acquisition of the North American Bus Industries (NABI) from an affiliate of Cerberus Capital Management for a cash transaction of $80m.
The acquisition includes a bus manufacturing facility in Anniston, a parts distribution center in Delaware, and a service center in Jurupa Valley, while excluding the company's discontinued operations in Hungary.
According to the manufacturer, the transaction is part of its plan to strengthen its market position and offer product support to the public transit operators over a long period.
New Flyer president and chief executive officer Paul Soubry said the addition of NABI to the company provides it with a new product line, access to new customers, a cost efficient manufacturing platform based in Alabama, and creates a significant player in aftermarket parts.
"The Company plans to operate the NABI bus and NABI parts operations under the names NABI Bus, LLC and NABI Parts, LLC, respectively, within the New Flyer group of companies," Soubry added.
The transaction was funded about CAD65m (%47.32m) from the issuance of the second and final tranche of New Flyer's strategic equity investment by Marcopolo along with additional $20m from the company's renewed senior secured credit facility.
During the last twelve months, NABI has been reported to sell 582 buses generating revenue of about $268m along with aftermarket parts revenue of about $60m.
