June 21, 2013 - 5:16 AM
WINNIPEG - New Flyer Industries Inc. is expanding its presence in the North American bus manufacturing and parts industry with the acquisition of NABI.
The Winnipeg-based company says it will pay $80 million cash to acquire North American Bus Industries, also known as NABI, from Cerberus Capital.
NABI has a bus manufacturing plant in Alabama, a parts distribution centre in Ohio and a service centre in California.
New Flyer will partially fund the deal with money raised through an investment by Marcopolo SA, which will hold about one-fifth of the company's common stock
New Flyer (TSX:NFI) says the acquisition will give it a complementary product line, access to new customers and significant aftermarket parts organization.
It will operate the acquired business units as NABI Bus and NABI Parts.
News from © The Canadian Press, 2013