WINNIPEG – New Flyer Industries Inc. (TSX:NFI) is expanding in the United States with the acquisition of North American Bus Industries, which has a manufacturing plant in Alabama, parts distribution centre in Ohio and a service centre in California.
The Winnipeg-based company announced Friday it will pay $80 million cash to acquire NABI from Cerberus Capital, a private equity firm that had been involved in restructuring the American bus maker and parts supplier.
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“NABI represents a compelling growth platform for us,” New Flyer’s president and chief executive officer Paul Soubry said in a statement.
“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.”
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New Flyer will partially fund the deal with $65 million raised through a previously announced investment by Marcopolo SA, which will hold about one-fifth of the company’s common stock. New Flyer will also draw an additional $20 million on its secured credit facility.
The transaction was expected to close later Friday.
New Flyer is a leading manufacturer of heavy-duty transit bus with some 2,200 employees in Canada and the U.S.
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