NORTH AMERICAN NFI GROUP ACQUIReS BRITISH ALEXANDER DENNIS
A major shift in bus manufacturers country. North-American NFI Group acquires British Alexander Dennis. With this take over NFI Group wants to form a market-leading global bus and coach manufacturer with revenues of approximately US$3,3 billion.
Together ADL and NFI Group create an independent global bus and coach manufacturer with market leading positions in the United Kingdom, North America and Hong Kong plus a growing footprint elsewhere in Asia Pacific, Latin America and Europe. With ADL NFI Group buys an extensive market share in for NFI new markets and create a platform for international growth, accelerated technology development and innovation.
According to the press release both companies have issued together, will ADL retain its own brand and Chief Executive Colin Robertson, who has led the company over more than ten years. Chief Financial Officer, Michael Stewart, will continue to lead ADL. They will also be tasked with driving NFI’s international growth ambitions.
In 2018 ADL generated revenues of £631 million, having grown at a compound annual growth rate of 10.5% since 2010, and delivered more than 2,500 buses and coaches across its domestic UK market and multiple international territories. For the fiscal year ended December 30, 2018, NFI posted revenues of US$2.5 billion. With this transaction NFI Group and ADL will form a US$3.3 billion company.
ADL is headquartered in Scotland and employs over 2,500 people. Over 31,000 of their vehicles are in service and operations in the United Kingdom, Ireland, Europe, Hong Kong, Singapore, Malaysia, New Zealand, Mexico, Canada and the United States.
NFI has over 6,300 team members, operating from facilities across Canada and the United States. The NFI Group contains New Flyer (heavy-duty transit buses), ARBOC (low-floor cutaway and medium-duty buses), MCI (motor coaches), and NFI Parts (parts, support and service).
Both companies emphasize that the objective is not to cut jobs or rationalise, but to focus on collaboration and best practice sharing. ADL will continue to pursue its strategic plans.
"This is a transformational acquisition for NFI to become a global bus manufacturer,” said Paul Soubry. ADL Chief Executive, Colin Robertson, believes that the consolidated businesses will enhance NFI’s market leading position in North America, while improving NFI’s offering through combined engineering expertise, supplier partnerships, electric vehicle know-how and aftermarket platforms”.
ADL’s primary shareholders, including Colin Robertson and Michael Stewart, retain an equity interest the business, having been issued shares in NFI Group Inc. as part of the transaction.