New Flyer US bus manufacturer NABI for $80M
Acquisition will add to Winnipeg company’s product line.
NABI will add to New Flyer’s product line, which includes Xcelsior buses. Photo: New Flyer
WINNIPEG — Bus manufacturer New Flyer Industries Inc. is acquiring North American Bus Industries Inc. (NABI) from an affiliate of Cerberus Capital Management LP for about $80 million.
The bus manufacturer (known as American Ikarus prior to 1996) has manufacturing operations in Anniston, Ala., a parts distribution centre in Delaware, Ohio, and a service centre in Jurupa Valley, Calif.
New Flyer, a bus manufacturer based in Winnipeg, says NABI also operates one of the transit industry’s most sophisticated aftermarket parts organizations, sourcing from more than 200 suppliers and providing support for transit buses throughout North America.
Bus revenue for the year from March 31, 2012 is approximately $268 million, aftermarket parts revenue of is about $60 million, and its combined adjusted EBITDA is $20 million.
NABI currently has a total backlog of 1,579 buses of which 593 are firm contracts and 986 are options.
“The addition of NABI to the New Flyer family provides New Flyer with a highly complementary product line, access to new customers, a cost efficient manufacturing platform based in Alabama, and it creates a significant player in aftermarket parts,” says Paul Soubry, New Flyer’s president and CEO.
The company plans to operate the bus and parts operations under the names NABI Bus LLC and NABI Parts LLC.
New Flyer has identified opportunities for cost synergies in purchasing and strategic sourcing, plus general and administrative expenses that it says will improve New Flyer’s competitiveness.
The combined company will employ more than 3,000 people.