Cash Purchase of North American Bus Industries an ‘Important Milestone,’
Brings ‘Complementary Product Line,’ CNG Customers Include DART
New Flyer Industries has purchased North American Bus Industries for $80 million in cash. The acquisition includes bus manufacturing operations in Anniston, Ala., a parts distribution center in Delaware, Ohio, and a service center in Jurupa Valley, Calif.
One year ago NABI last year won a $210 million compressed natural gas bus order from DART, Dallas Area Rapid Transit. Late in 2012 New Flyer regained LA Metro as a customer, beating out NABI.
“NABI is an innovative manufacturer of urban transit buses for U.S. customers,” New Flyer said. “NABI also operates one of the transit industry’s most sophisticated aftermarket parts organizations, sourcing parts from over 200 different suppliers and providing support for transit buses throughout North America.”
‘Long-Term Stability and Excellence’
“The acquisition of NABI marks an important milestone for New Flyer and is consistent with the company’s strategic plan to ensure market and technology leadership, while providing public transit operators with long-term stability and excellence in product support,” New Flyer chairman Brian Tobin said in a release. “We have been able to proceed with this transaction while maintaining a flexible and conservative approach to our balance sheet,” Tobin said.
“NABI represents a compelling growth platform for us,” said New Flyer president and CEO Paul Soubry. “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.”
NABI Bus and NABI Parts
New Flyer will operate the former NABI entities as NABI Bus and NABI Parts, Soubry said.
NABI president and CEO Jim Marcotuli called New Flyer “a world-class company” and said, “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.”
CNG Buses for DART and Metro
DART began taking delivery late last year of 459 CNG-fueled NABI buses, mostly 40-footers but including 48 30-foot buses. Approximately 135 have thus far been delivered. Deliveries are to run through 2015 (F&F, July 9, 2012).
LA Metro is buying 550 CNG-fueled low-floor Xcelsior model buses from New Flyer. Options could bring the total to 900 (F&F, January 10).
New Flyer’s NABI acquisition excludes the firm’s discontinued operations in Hungary. New Flyer notes that NABI was founded in 1992, and was known prior to October 1996 as American Ikarus.
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Source: New Flyer Industries with Fleets & Fuels follow-up