NFI Parts, a subsidiary of NFI Group Inc., announced that it has officially combined the North American aftermarket parts business of Alexander Dennis Limited (ADL) under its umbrella. Prior to this combination, NFI Parts and ADL were standalone businesses, with redundant physical inventories, parts stocking locations, and investments.
“NFI Parts remains committed to providing industry-leading service to our customers and the vehicles those customers operate,” said Brian Dewsnup, president, NFI Parts. “The additional combination of ADL Parts comes with tremendous advantages for our customer base. Almost all of the North American ADL customers are already NFI Parts customers so this transition will help them simplify their parts purchasing.”
The combination of ADL and NFI Parts was a component of NFI’s transformative cost-reduction initiative, NFI Forward, first announced in July 2020. NFI Forward is expected to drive approximately $67.0 million in annual adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) savings by the end of 2023 from 2019 levels, plus an additional $10.0 million in annualized free cash flow generation. In FY 2020, NFI Forward achieved approximately $17.0 million in adjusted EBITDA savings, and a further $1.0 million in free cash flow savings.
“Through our transformational NFI Forward initiative, we have been focused on moving NFI from a holding company to an integrated operating company,” said Paul Soubry, NFI’s CEO. “As a result of this successful combination, NFI Parts is now in an even stronger position to continue providing world-class service to customers across North America.”