Bus

Marcopolo to make $115M investment in New Flyer

Posted on January 24, 2013

New Flyer Industries Inc. announced Marcopolo S.A. will make a strategic investment of approximately $115 million to acquire 11,087,834 newly issued common shares, representing a 19.99% stake in New Flyer.

The investment is subject to customary TSX approval.

Founded in 1949, and headquartered in Caxias do Sul, Brazil, Marcopolo is one of the world’s largest bus builders and is primarily engaged in the manufacturing of buses, bus bodies and components with a product line covering a wide range of models including: coach, urban, micro-buses and mini-buses.

The two companies also signed a Memorandum of Understanding to explore opportunities to cooperate on engineering, technical, purchasing and operational matters, with a focus on reducing New Flyer’s bus manufacturing and aftermarket part costs and enhancing New Flyer’s competitiveness. The companies further agreed to assess Marcopolo’s technology and products for possible introduction into the Canadian and U.S. markets through New Flyer as well as New Flyer’s technology and products for potential distribution into global markets.

The investment agreement permits Marcopolo to nominate a member to the Board of Directors of New Flyer, while Marcopolo holds at least 10% of the outstanding common shares of New Flyer and grants Marcopolo pre-emptive rights to purchase additional securities in certain circumstances to maintain its proportionate interest in New Flyer.

Marcopolo has agreed to certain disposition and standstill restrictions including a requirement to hold the shares it acquires for a period of at least two years and a restriction on acquisitions of additional New Flyer securities and certain other actions for a period of at least two years. The agreement also provides that if New Flyer in the future enters into an agreement with a third party providing for the acquisition of all of New Flyer’s shares or assets, then Marcopolo will, subject to certain exceptions, agree to vote in favor of and to sell its shares as part of the transaction unless Marcopolo has made an alternative proposal that the Board believes is superior or that the shareholders have determined to accept.

With anticipated annual net revenues of approximately $1.9 billion in 2012, Marcopolo has a market capitalization of approximately $2.8 billion and employs more than 22,000 people around the world. Marcopolo manufactures over 32,000 buses annually — 60% are for the Brazilian market and 40% for international markets.

Bus manufacturing is carried out directly by Marcopolo and through various joint ventures with companies like Daimler, Tata Motors and others in 17 plants located in Brazil, South Africa, Argentina, Australia, Colombia, Egypt, India and Mexico. Marcopolo also has a factory for bus parts and component fabrication in China.

View comments or post a comment on this story. (0 Comments)

More News

AVTA to become nation's first 100% electric bus fleet

BYD Motors will build and deliver a variety of all-electric bus models including a 40-foot low-floor transit bus, a 60-foot low-floor articulated bus, and a 45-foot commuter coach.

Bridj, KCATA, Ford partner for urban mobility pilot project

The transformative program is the first U.S. public-private partnership that brings together a major U.S. transit agency, an automaker and an urban technology company with the aim of enhancing Kansas City’s existing mass transit system by providing greater access and mobility to residents.

L.A. Metro opens new 'green' bus facility

Division 13 will serve as a bus maintenance, operations and service facility with a multi-level parking garage that accommodates 200 CNG buses, fueling equipment, transportation offices and support areas.

Starcraft Bus named Ford's top volume pool account for 10th year

The company has purchased and sold more Ford E-Series chassis than any other bus manufacturer in North America since 2006.

Cummins announces new 'SmartEfficiency' initiative

The product improvement plan focuses on improved fuel efficiency, lower total cost of ownership and improved uptime.

See More News

Post a Comment

Post Comment

Comments (0)

More From The World's Largest Fleet Publisher

Automotive Fleet

The Car and truck fleet and leasing management magazine

Business Fleet

managing 10-50 company vehicles

Fleet Financials

Executive vehicle management

Government Fleet

managing public sector vehicles & equipment

TruckingInfo.com

THE COMMERCIAL TRUCK INDUSTRY’S MOST IN-DEPTH INFORMATION SOURCE

Work Truck Magazine

The number 1 resource for vocational truck fleets

Schoolbus Fleet

Serving school transportation professionals in the U.S. and Canada

LCT Magazine

Global Resource For Limousine and Bus Transportation

Please sign in or register to .    Close