WINNIPEG, June 1, 2017 /CNW/ - (TSX:NFI)
(TSX:NFI.DB.U) New Flyer Industries Inc. ("New Flyer" or the
"Company"), the largest transit bus and motor coach manufacturer
and parts distributor in North
America, announced today that it has acquired Carlson
Engineered Composites Inc. ("Carlson") and the assets of its US
affiliated companies, a privately-owned composites company,
headquartered in Winnipeg,
Manitoba for USD $13 million,
subject to certain normal and customary purchase price
adjustments.
Carlson manufactures fiberglass reinforced polymer (FRP)
components primarily to original equipment manufacturers of
transportation vehicles and agricultural equipment, with 2016 sales
exceeding USD $38 million. Carlson
currently employs over 300 people at three production facilities
totaling 235,000 square feet and located in Winnipeg, MB; St
Cloud, MN and Anniston,
AL.
Carlson's business began in 1985 with industrial and custom part
fabrication, from which evolved a line of fibre-glass reinforced
plastic (FRP) water and sewage tank manufacturing. The business
later expanded with the introduction of a line of truck caps and
other recreational vehicle parts. Carlson then became involved in
the development and supply of FRP parts and sub-assemblies to the
transportation industry.
"The acquisition of Carlson will allow us to control of one of
the more critical commodities in our manufacturing supply chain,"
said David White, New Flyer Group's
Executive Vice President, Supply Management. "As we think about the
businesses of Carlson and Frank Fair Industries Ltd., the Winnipeg
FRP business owned by Motor Coach Industries Limited since 1991, we
can explore sharing best practices in composite part manufacturing,
optimizing processes, and pursuing new technologies."
Mr. White further explained, "This acquisition follows on the
very successful repatriation and in-sourcing of various metal part
fabrication, machining and painting operations across the Company
to control quality, improve delivery performance and reduce costs
for our bus manufacturing operations. Carlson's U.S.
facilities will also contribute to the Company complying with the
increasing U.S. content requirements under increased Buy America
regulations resulting from the 2015 FAST Act for the purchase of
transit buses and motor coaches by U.S. federally-funded transit
agencies."
Neil Carlson, Founder and
Chairman of Carlson Engineered Composites Inc. commented, "We are
very proud to have become a leader in providing complex fiberglass
components to transit buses. Our team has developed a tradition of
integrity, execution and profitable growth and has been committed
to maintaining a competitive advantage through education,
innovation and technology. We have admired New Flyer and
followed their growth into the US with Carlson facilities dedicated
to support their operations. Joining the New Flyer family is
the next logical step to support further growth and explore new
technologies."
About the Company
The Company employs over 5,000 team members and is the largest
transit bus and motor coach manufacturer and parts distributor in
North America with fabrication,
manufacturing, distribution and service centers in Canada and the
United States.
Through its Canadian and U.S. subsidiaries, New Flyer Industries
Canada ULC and New Flyer of America Inc., the Company is
North America's heavy-duty transit
bus leader and offers the broadest transit bus product line,
incorporating the broadest range of drive systems available,
including: clean diesel, natural gas, diesel-electric hybrid,
electric-trolley and now battery-electric. New Flyer actively
supports over 44,000 heavy-duty transit buses (New Flyer, NABI and
Orion) currently in service.
Through its Canadian and U.S. subsidiaries, Motor Coach
Industries Limited and Motor Coach Industries, Inc., the Company is
the leader in motor coaches in Canada and the U.S., offering the MCI J4500,
which is the industry's best-selling intercity coach for 11
consecutive years, and the MCI D-Series, the industry's
best-selling coach line in North American motor coach history. MCI
is also the exclusive distributor of Setra S417 and S407 in
the United States and Canada. MCI actively supports over 28,000
motor coaches currently in service and offers 24-hour roadside
assistance 365 days a year.
The Company also operates North
America's most comprehensive aftermarket parts organization
providing support for all types of transit buses and motor coaches.
All buses and coaches are supported by an industry-leading
comprehensive warranty, service and support network.
Further information is available on the Company's websites at
www.newflyer.com and www.mcicoach.com.
The common shares and convertible unsecured subordinated
debentures of the Company are traded on the Toronto Stock Exchange
under the symbols NFI and NFI.DB.U, respectively.
Forward-Looking Statements
This press release contains forward-looking statements relating
to expected future events, including the integration of the
acquired business into the Company's existing business and the
operation of the business by the Company. Although the
forward-looking statements contained in this press release are
based upon what management believes to be reasonable assumptions,
investors cannot be assured that actual results will be consistent
with these forward-looking statements, and the differences may be
material. Actual results may differ materially from management
expectations as reflected in such forward-looking statements for a
variety of reasons, including risks related to the ability to
implement the operational changes necessary to successfully
integrate the business into the Company's existing businesses,
market and general economic conditions and economic conditions of
and funding availability for customers to purchase buses and to
purchase parts or services, which will have an impact on the volume
of parts sold by the acquired company to the Company and the other
risks and uncertainties discussed in the materials filed with the
Canadian securities regulatory authorities and available on SEDAR
at www.sedar.com. Due to the potential impact of these factors, the
Company disclaims any intention or obligation to update or revise
any forward-looking statements, whether as a result of new
information, future events or otherwise, unless required by
applicable law.
SOURCE New Flyer Industries Inc.