Supreme Industries in Agreement to Divest Shuttle-Bus Assets
Supreme Industries
Supreme Industries, Inc. (NYSE MKT: STS), a leading manufacturer of specialized commercial vehicles including truck bodies and specialty vehicles, has announced a definitive agreement has been reached 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. According to Supreme Industries, 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.
“The bus market has become increasingly competitive and this business has been unable to achieve our profitable growth objectives,” noted Mark D. Weber, Supreme’s president and chief executive officer. “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.
Category: General Update, Vehicles
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