Supreme Industries Announces Definitive Agreement to Divest Shuttle-Bus Assets
February 28 2014 - 3:00PM
Business Wire
Supreme Industries, Inc. (NYSE MKT: STS), a leading
manufacturer of specialized commercial vehicles including truck
bodies and specialty vehicles, today announced a definitive
agreement has been reached to sell the Company’s shuttle-bus assets
to Forest River, Inc.
In December 2013, management announced Supreme would exit the
shuttle-bus business and divest the associated assets. This action
is consistent with the Company’s previously disclosed long-term
strategy of focusing on its core work truck and specialty vehicle
markets. Net proceeds from the sale of assets are estimated to be
approximately $7 million dependent upon sales of buses prior to
close. A modest gain on the sale is anticipated and the proceeds
will be used to fund a series of topline growth initiatives,
capital expenditures and margin expansion projects. The transaction
is expected to close within thirty days.
“We are pleased to have reached a mutually beneficial agreement
for the sale of our shuttle-bus assets to Forest River,” stated
Mark D. Weber, Supreme’s president and chief executive officer.
“The bus market has become increasingly competitive and this
business has been unable to achieve our profitable growth
objectives,” he added. “This divestiture allows us to concentrate
our resources on growing our work truck, specialty vehicle and
trolley businesses.”
Forest River, Inc., an Indiana-based Berkshire Hathaway Company,
manufactures a full line of transit buses, shuttle buses and tour
coaches.
About Supreme IndustriesSupreme Industries, Inc. (NYSE
MKT: STS), is a nationwide manufacturer of truck bodies and
specialty vehicles produced to the specifications of its customers.
The Company's transportation equipment products are used by a wide
variety of industrial, commercial and law enforcement
customers.
News releases and other information on the Company are available
on the Internet at: http://www.supremeind.com or
http://www.b2i.us/irpass.asp?BzID=1482&to=ea&s=0
Supreme Industries, Inc.Investor and Media Contact:Matthew J.
Dennis, CFA, 574-228-4130Supreme Investor Relations
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