New Flyer Industries Inc. has announced its acquisition of North American Bus Industries Inc. (NABI) from an affiliate of Cerberus Capital Management L.P. for cash consideration of approximately $80 million, virtually all for the satisfaction of affiliate debt.
NABI was founded in 1992 and was known prior to October 1996 as American Ikarus; Cerberus acquired it in 2006. Its holdings include bus manufacturing operations in Anniston, AL, a parts distribution center in Delaware, OH, and a service center in Jurupa Valley, CA. The company also offers aftermarket parts from more than 200 different suppliers and support for public transit buses throughout North America.
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.
“We are excited about this opportunity,” said New Flyer President and Chief Executive Officer Paul Soubry, “and believe that the combination of our two companies provides for a broader portfolio of buses and aftermarket products and services to enhance our customer support for operators of transit buses in the U.S. and Canada. With this combination of New Flyer and NABI, we believe that our companies will be stronger and more stable together.”
Jim Marcotuli, NABI president and chief executive officer, added: “New Flyer is a world-class company and this acquisition will provide NABI with synergistic opportunities to achieve an even higher level of performance and success. The combined entity will be positioned to provide customers with an enhanced product offering and superior customer service.”
The combined entity will employ more than 3,000 people and will provide product support to more than 40,000 buses currently in operation in Canada and the U.S.
New Flyer has manufacturing facilities in Winnipeg, MB, and St. Cloud and Crookston, MN. It also operates a parts fabrication facility in Elkhart, IN, and parts distribution centers in Winnipeg; Brampton, ON; Erlanger, KY; and Fresno, CA.