Via BusinessWire
ELKHART, Ind.— Forest River Bus, LLC., a subsidiary of Forest River, Inc. and the nation's leading shuttle bus and van manufacturer, proudly announces the acquisition of Collins Bus, one of America's oldest and most successful school bus builders.
Collins Bus, with a rich history spanning over 50 years, was founded in 1967 in Kansas City, Missouri, and later moved to Hutchinson, Kansas. Renowned for its commitment to safety, strength, and reliability, Collins Bus holds a distinguished status as the pioneer in the development of the Type A school bus. This groundbreaking innovation marked the beginning of a series of advancements that have played a pivotal role in shaping the reputation of Collins buses as the most versatile and trusted in the nation.
“The addition of Collins Bus to the Forest River Bus family highlights another milestone in our overall growth and leadership,” stated Pete Liegl, President and CEO of Forest River, Inc. “The performance of our Bus and Van division is a shining star for Forest River, and this acquisition raises an already high bar.”
Forest River Bus President, David Wright, expressed his enthusiasm about this acquisition, stating, "We are thrilled to welcome Collins Bus into the Forest River family. This purchase combines the strengths and heritage of two industry leaders. Collins Bus has a remarkable history, unwavering commitment to quality, and a team of dedicated employees. We value their legacy and look forward to building on their success."
Wright added, "Our focus is not only on the products but also on the people. The skilled and passionate employees at Collins Bus are a vital asset, and we are excited to collaborate with them to continue delivering top-notch school buses that prioritize the safety and well-being of students."
The acquisition by Forest River signifies a joint commitment to maintaining the highest standards in manufacturing, customer service, and product innovation. Forest River is committed to preserving the legacy of Collins Bus, while leveraging its own innovative approaches to enhance product offerings.
REV Group announced the purchase price as $303 million in regulatory filings.
REV Group expects to generate at least $250 million in net cash proceeds from these strategic actions. The net proceeds will be used to return approximately $180 million of cash to shareholders in the form of a special cash dividend in the amount of $3.00 per share of common stock, payable on February 16th, 2024, to shareholders of record on February 9th, 2024, with the remainder used to pay down debt under its ABL credit facility.
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