New Flyer deal makes in contintent's largest bus builder

Brand new Flyer is buying Electric motor Coach Industries International with regard to US$455 million, it introduced Tuesday.

The transaction, that is expected to be completed at the end of 2015, will make Winnipeg-based New Flyer the leading tour bus manufacturer in North America.

"This is an exciting deal regarding both New Flyer as well as MCI, and we're getting excited about being a leader in The united states, " New Flyer president/CEO Paul Soubry said on the conference call to discuss the facts of the agreement.

MCI has already been North America's largest freeway bus manufacturer and Fresh Flyer boasts being the greatest bus maker for metropolitan centres.

The two companies will certainly continue to operate separately within Winnipeg and there will be absolutely no layoffs. Together, they will utilize about 4, 800 individuals. Currently, more than 42, 000 transit buses and twenty-eight, 000 coaches produced by the businesses are in operation across North america and in the U. H.

The deal will increase dividends through 12. 9%, from $0. 62 to $0. seventy per share annually, Soubry said.

"It also permits us to build cleaner, more efficient flow buses, " said John Tobin, New Flyer's panel chairman.

Founded in 1933, MCI is also North Many leading parts and support supplier, with three production facilities and nine services and parts distribution zones.

"We also wanted to obtain beyond just transit busses and increase our replacements business, " Soubry stated.

The deal allows New Hazard to expand its United states private and public electric motor coach markets, with a substantial increase in the motor trainer parts and service company.

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