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New Flyer acquires ARBOC Specialty Vehicles
New Flyer acquires ARBOC Specialty Vehicles Canada NewsWire ST. CLOUD, MN, Dec. ...
About this update from Nfi Group Inc.
New Flyer acquires ARBOC Specialty Vehicles /* Style Definitions */ span.prnews_span { font-size:8pt; font-family:"Arial"; color:black; } a.prnews_a { color:blue; } li.prnews_li { font-size:8pt; font-family:"Arial"; color:black; } p.prnews_p { font-size:0.62em; font-family:"Arial"; color:black; margin:0in; } Canada NewsWire ST. CLOUD, MN, Dec. 1, 2017 ARBOC is a pioneer and North American leader in low-floor body-on-chassis (or "cutaway") buses. ARBOC has also introduced a medium-duty low-floor transit and shuttle bus based on their own chassis design. $95 million cash purchase price representing an implied purchase multiple of approximately 10.4 times forecasted 2017 adjusted EBITDA of $9.1 million.  2017 deliveries estimated to be 360 buses, with 2018 deliveries expected to be 40% higher (of which 65% are already firm orders for 2018). Transaction is expected to be immediately accretive to earnings per share and free cash flow per share (before synergies). ST. CLOUD, MN, Dec. 1, 2017 /CNW/ - (TSX: NFI) Transit Holdings, Inc., a U.S. subsidiary of New Flyer Industries Inc. ("NFI Group"), the largest transit bus and motor coach manufacturer and parts distributor in North America, announced today that it has acquired 100% of the equity interests in ARBOC Specialty Vehicles, LLC ("ARBOC") for a purchase price of $95 million, subject to certain purchase price adjustments, including satisfaction of debt. NFI Group is using available cash and its existing credit facilities to finance the transaction. The acquisition represents a continuation of NFI Group's growth and diversification strategy and was not subject to any pre-closing regulatory or antitrust requirements. Established in 2008, ARBOC is a North American pioneer and leader in low-floor body-on-chassis (or "cutaway") bus technology. These buses range between 21 and 35 feet in length, and operate in transit, paratransit and shuttle applications. ARBOC buses exceed US federal fuel economy standards, Buy America requirements, and undergo safety testing beyond industry norms. ARBOC has raised the industry standards for cutaway bus passenger accessibility and comfort over traditional high-floor cutaway vehicles.  The North American cutaway bus market has an estimated annual volume of between 16,000 to 18,000 units, which is more than three times the current estimated size of the heavy-duty tr...