New Flyer Acquires ARBOC Specialty Vehicles

Transit Holdings, Inc., a U.S. subsidiary of New Flyer Industries Inc. (NFI), the transit bus and motor coach manufacturer, announced that it has acquired 100% of the equity interests in ARBOC Specialty Vehicles, LLC for $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.

NFI said the acquisition represents a continuation of its growth and diversification strategy and was not subject to any pre-closing regulatory or antitrust requirements.

 ARBOC is a manufacturer of 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

ARBOC has delivered more than 2500 buses, in Canada and the U.S. over the past five years, NFI said.  Management expects ARBOC to deliver approximately 360 buses in 2017 with a revenue mix comprising of $36.3 million for bus sales and $1.5 million for parts sales, and expected 2017 Adjusted EBITDA of approximately $9.1 million.

In addition to its cutaway bus product portfolio, ARBOC has introduced a medium-duty low-floor transit and shuttle bus based on ARBOC’s own chassis design. The bus is currently completing testing at the Altoona Bus Research and Testing Center under the Federal Transit Administration Model Bus Testing Program to 10-year structural durability standards.  ARBOC has already received initial orders for deliveries in 2018.  ARBOC expects to deliver approximately 500 buses in 2018, with its current backlog for 2018 over 320 orders.

Located in Middlebury, Ind., ARBOC employs approximately 100 people in a 112,000 square foot facility.  ARBOC uses diesel and natural gas engines based on General Motors, Chrysler, Ford and Freightliner chassis, and will add NFI Group’s expertise in battery electric propulsion and its beginning development of autonomous drive features from its Vehicle Innovation Centre (VIC) in Anniston, Ala., the company said

NFI said ARBOC’s management team will remain in place, with President and Chief Executive Officer Don Roberts reporting to Wayne Joseph president of New Flyer’s Transit Bus business.