A Winnipeg bus company’s United States route, Pembina’s bought deal and TD’s

Winnipeg bus manufacturer New Flyer is purchasing Motor Coach Industries for $604 million Cdn, the company said Tuesday.

“Specifically in North America, you’ve got number one in coach and number one in transit bus headquartered here in Winnipeg”, explains Paul Soubry, President and CEO of New Flyer.

“If they take over MCI, and MCI has 28,000 sitting out there, that’s a huge advantage for New Flyer”, he said.

MCI has 1,500 employees, including about 900 in Winnipeg and 235 in Pembina.

“It’s a really important deal for Winnipeg’s future”, Barry Prentice, a professor with the University of Manitoba’s Transport Institute said. “These are both long established Winnipeg companies”.

New Flyer management believes it will be a done deal by the end of the year. “We can build on each other’s strengths”, Heller said.

New Flyer also has facilities in Alabama and Indiana.

“New Flyer and MCI don’t compete”.

Diversification: The addition of MCI’s new and pre-owned coach business significantly diversifies New Flyer’s product offering and customer base. (“MCI”) from an affiliate of KPS Capital Partners, L.P. for cash consideration of US$455 million subject to certain purchase price adjustments (the “Transaction”).

Over the same period, MCI delivered 576 new coaches, generating $315 million in revenue, plus $128 million in aftermarket parts and service. It also has service centers throughout the USA and Canada.

The major advantage will be when it comes to parts and part distribution in the United States, he said.

In accordance with IFRS, the Company will consolidate the revenue, earnings and other financial information of MCI with New Flyer’s financial information in its regularly reported financial statements.