New Flyer Acquires TCB Industries, LLC
Winnipeg, Manitoba, Canada, April 30, 2010; New Flyer Industries Inc. (TSX:NFI.UN) (“New Flyer” or the “Company”), the leading manufacturer of heavy-duty transit buses in Canada and the United States, announced today that, through a wholly owned subsidiary, it has acquired the assets and business of TCB Industries, LLC (“TCB”) of Elkhart, Indiana. The acquisition price was approximately $1M and the purchased business will be operated by New Flyer’s subsidiary, TCB Enterprises, LLC.
TCB is a designer and manufacturer of interior LED lighting systems, grab rails and seamless stanchions, drivers’ barriers and other miscellaneous bus parts. TCB was established in 2004 and was privately owned by Tony Cunnane and Bob Loper. Mr. Cunnane retired as the Fleet Manager of New Bus Procurement from New York City Transit in 2004 after 22 years of service. Mr. Loper founded B&R Mirrors in 1992 in Elkhart, Indiana and grew it to an approximate 70% share of the transit bus mirror market before selling it in 2004. Mr. Cunnane and Mr. Loper will continue to operate and grow the business for TCB Enterprises, LLC as part of the New Flyer family.
“Since its inception, TCB has been an important supplier to New Flyer,” said David White, New Flyer’s Executive Vice President, Supply Management. “With this new business, New Flyer can fully leverage the intellectual property, capabilities and product offering of TCB and increase the benefits that our bus products provide to our customers. Further we see TCB as a key vehicle for us to further explore development of OEM parts for New Flyer buses and to grow the line of New Flyer Kinetik branded aftermarket parts.”
As part of the purchase of TCB, New Flyer has also entered into a memorandum of understanding with Franz Kiel GmbH of Germany (“Kiel”), a leading manufacturer of transit vehicle seats in Europe, for a supply arrangement with the distribution rights to Kiel passenger seats for city transit buses through Kiel NA LLC. Management expects this new relationship with Kiel will allow New Flyer to deliver increased benefits such as reduced weight and enhanced design to its customers through world-class and proven seating products.
New Flyer’s strategic plan has identified product innovation control as a key theme to improve overall quality, improve manufacturing efficiencies and enhance customer satisfaction. Through product control, New Flyer will select and focus on systems and components that will increase overall value for its customers and align with the goal of providing Best Bus Value and Support for Life. Management believes that the acquisition of TCB is a significant step in delivering this strategy. Mr. White continued, “The acquisition of TCB in no way detracts from New Flyer’s offering to meet the needs of customers who want to customize and optimize the bus specification to their unique needs, but what it does allow is for us to offer a preferred New Flyer option that delivers proven performance, success in manufacturing efficiency and best value.”
“We are very pleased with this new direction for TCB,” said Mr. Cunnane. “TCB stands for ‘Taking Care of Buses’ and becoming an integral part of the largest heavy-duty bus manufacturer in Canada and the United States will permit the business to grow and expand its capabilities as a manufacturer of high-quality, innovative bus components. We look forward to this exciting new phase of the business.”
About New Flyer
New Flyer is the leading manufacturer of heavy-duty transit buses in the United States and Canada. The Company’s three facilities — in Winnipeg, MB, St. Cloud, MN and Crookston, MN – are all ISO 9001, ISO 14001 and OHSAS 18001 certified. With a skilled workforce of over 2,000 employees, New Flyer is a technology leader, offering the broadest product line in the industry, including drive systems powered by clean diesel, LNG, CNG and electric trolley as well as energy-efficient gasoline-electric and diesel-electric hybrid vehicles. All products are supported with an industry-leading, comprehensive parts and service network. The Company’s income deposit securities are traded on the Toronto Stock Exchange under the symbol NFI.UN. Further information is available on Company’s web site at www.www.newflyer.com.
This press release may contain forward-looking statements relating to expected future events and financial and operating results of New Flyer and New Flyer Industries Canada ULC (“NFI ULC”) that involve risks and uncertainties. Although the forward-looking statements contained in this press release are based upon what management believes to be reasonable assumptions, investors cannot be assured that actual results will be consistent with these forward-looking statements, and the differences may be material. Actual results may differ materially from management expectations as projected in such forward-looking statements for a variety of reasons, including market and general economic conditions and the other risks and uncertainties discussed in the materials filed with the Canadian securities regulatory authorities and available on SEDAR at www.sedar.com. Due to the potential impact of these factors, New Flyer and NFI ULC disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law.
For further information, please contact:
New Flyer Industries Inc.
Chief Financial Officer
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