Supreme Industries Inc. announced a definitive agreement to sell its shuttle bus assets to Forest River Inc.
In December 2013, management announced Supreme would exit the shuttle-bus business and divest the associated assets. The 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 30 days.
"The bus market has become increasingly competitive and this business has been unable to achieve our profitable growth objectives," said Mark D. Weber, Supreme's president/CEO. "This divestiture allows us to concentrate our resources on growing our work truck, specialty vehicle and trolley businesses."
Forest River Inc., an Ind.-based Berkshire Hathaway Co., manufactures a full line of transit buses, shuttle buses and tour coaches under the Glaval Bus, Starcraft Bus, Elkhart Coach and Xpress brands.