Supreme Industries, Inc. has reached a definitive agreement to sell the company's shuttle-bus assets to Forest River, Inc.
Supreme Industries, Inc. (NYSE MKT: STS) has reached a definitive agreement to sell the company's shuttle-bus assets to Forest River, Inc.
In December 2013, management announced Supreme would exit the shuttle-bus business and divest the associated assets. This action is consistent with the company's previously disclosed long-term strategy of focusing on its core work truck and specialty vehicle markets.
Net proceeds from the sale of assets are estimated to be approximately $7 million dependent upon sales of buses prior to close. A modest gain on the sale is anticipated and the proceeds will be used to fund a series of topline growth initiatives, capital expenditures and margin expansion projects. The transaction is expected to close within thirty days.
"We are pleased to have reached a mutually beneficial agreement for the sale of our shuttle-bus assets to Forest River," stated Mark D. Weber, Supreme's president and chief executive officer.
"The bus market has become increasingly competitive and this business has been unable to achieve our profitable growth objectives. This divestiture allows us to concentrate our resources on growing our work truck, specialty vehicle and trolley businesses."
Forest River, Inc., an Indiana-based Berkshire Hathaway Company, manufactures a full line of transit buses, shuttle buses and tour coaches.