NFI Group Inc. and GILLIG LLC have formed a 50/50 joint venture that acquired the assets of American Seating Inc., a producer of seats for transit, motorcoach, and rail applications. 

The joint acquisition by the two U.S. heavy-duty transit bus manufacturers secures a critical component of the transit industry’s supply chain, positioning American Seating for operational performance recovery and long-term stability to the benefit of all customers, according to a joint press release.

An Unprecedented Partnership

The asset acquisition is being completed through a joint venture, entitled GR Seating LLC, which will assume ownership of American Seating’s key assets, including its equipment, inventory, brand, and intellectual property. 

Operations will continue at the existing facilities in Grand Rapids, Michigan, under the American Seating name, and the partnership with the United Automobile, Aerospace, and Agricultural Implement Workers of America (UAW) and UAW Local No. 135 will be maintained. 

The company will also support buses in the field through its aftermarket business, maintaining customer and supplier relationships.

As 50% partners in the joint venture, each manufacturer will have representation on the joint venture’s board, which will provide governance and oversight to an independent third-party management team. Neither NFI nor GILLIG will be involved in day-to-day operations.

What’s Next

The joint venture will work closely with the previous ownership team, including former Chairman Ed Clark and former President/CEO Tom Bush, to ensure a smooth transition while driving forward a strategy to increase throughput and improve delivery timelines for customers. 

The joint venture has committed to making dedicated investments in equipment and facilities to enable employees’ success and support the management team’s recovery plan.

“American Seating has been a long-time supplier to the North American heavy-duty transit industry, recognized for the quality of its products and the breadth of its offering,” said Paul Soubry, president and CEO at NFI. “While American Seating has faced recent challenges, we are confident that through this joint venture, we will stabilize and enhance performance, ensuring more consistent supply for their customers and the millions of riders who use their seats every day.”

“In this partnership with NFI, we aim to put the health and stability of the transit industry above all else,” said Derek Maunus, president and CEO for GILLIG. “We are committed to the success of American heavy-duty transit, and this investment is another way we will continue to drive America forward.”