Bus

New Flyer acquires Orion aftermarket parts business

Posted on March 7, 2013

New Flyer Industries Inc. acquired certain assets from Daimler Buses North America (DBNA) relating to its Orion aftermarket parts business for heavy-duty transit buses.

DBNA’s Orion parts business generated revenue in 2012 of approximately $54 million, a portion of which was from supporting the nearly 10,000 Orion buses currently in operation in Canada and the U.S. The purchase price for the assets was approximately $29 million, which includes an estimated $6.5 million for the purchase of accounts receivable, and is subject to post-closing adjustments for working capital that are normal and customary for these types of transactions.

The purchase price was funded by using proceeds from the recently announced equity investment by Marcopolo S.A., one of the world’s leading global bus manufacturers, which made the first tranche of its investment in New Flyer, totaling approximately $51 million, in February.

Under the terms of the transaction with DBNA, New Flyer has acquired DBNA’s Orion aftermarket parts inventory, accounts receivable and assumed certain obligations under its parts contracts with transit customers; acquired an exclusive license to use DBNA’s proprietary part designs for Orion buses in connection with New Flyer’s aftermarket parts business; and entered into an arrangement under which New Flyer will be the exclusive supplier of parts required by DBNA for customer warranty support, under Orion bus purchase contracts and pre-closing parts contracts.

The companies have also entered into a transition services agreement for an interim period following the purchase, during which time the business will be prudently and efficiently integrated into New Flyer’s business systems and four existing parts distribution centers in Canada and the US.

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

More News

BC Transit piloting video cameras on buses

Up to six cameras will be installed on each bus. There is no live monitoring of the video which will only be removed and viewed by authorized security staff following a reported incident. Only video required for security purposes will be retained, all other video will be erased.

Calif. agencies approve merger

Pending adoption by its member entities, the merger between Victor Valley Transit Authority and Barstow Area Transit is slated to take effect July 1, 2015.

MCI Stands Up for Transportation in Pembina, Chicago and Louisville

Officials at MCI’s Pembina plant included Rep. Kevin Cramer, R-N.D.; North Dakota Commerce Department Commissioner Alan Anderson; Gail Hand, northeastern director for Sen Heidi Heitkamp, D-N.D.; Tom Brusegaard, regional director for Sen. John Hoeven, R-N.D;  Pembina County Commissioner Hetty Walker; and Cavalier, N.D. Mayor Ken Briese.

Uber adds rickshaws to service in India

Drivers are told to say ‘namaste,’ a common Indian greeting, and are encouraged to use their meters. Uber pays its drivers an additional 40 rupees, or just over 60 cents, per ride on top of the fare.

2,627 complaints lodged on Fla.'s HART bus system

The unedited complaints represent only one side of the story and often are fired off by people who are upset. HART says its own GPS and video technology shows many are plain wrong. The agency relies upon the list to target areas of customer service that are in need of improvement.

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 resource for managers of class 1-7 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