NFI Group Scoops Up U.K. Bus Company ADL


Global bus manufacturer NFI Group Inc. has acquired Alexander Dennis Ltd. (ADL), a U.K.-based bus maker. Notably, NFI’s electric vehicle (EV) experience is expected to enhance ADL’s EV offerings.

The total transaction value is 320 million British pounds on a cash-free, debt-free basis, subject to certain adjustments. NFI’s subsidiaries include New Flyer of America Inc. and New Flyer Industries Canada ULC, which offer Xcelsior and Xcelsior CHARGE brands, incorporating drive systems such as diesel, natural gas, diesel electric, trolley electric, battery electric and fuel cell electric.

In 2018, ADL generated manufacturing revenue of $747 million and $95 million in aftermarket parts and service revenue. Approximately 49% of ADL’s consolidated revenue was generated from the U.K., 27% from Asia Pacific markets, 12% from North America, and the remaining 12% from aftermarket and developing markets. In addition, ADL generated free cash flow of $24 million. From 2010 to 2018, ADL achieved a compound annual revenue growth rate of 10.5%.

“This is a transformational acquisition for NFI to become a global bus manufacturer,” states Paul Soubry, NFI’s president and CEO. “ADL is the U.K.’s No. 1 bus manufacturer and the No. 1 global producer of double deck buses, with an established international presence, and is recognized as a leader known for innovative products and a commitment to quality and service. We’re thrilled to have ADL join the NFI family in a transaction that we believe will drive our business forward by combining joint strengths in engineering, sales, new product development and manufacturing with NFI’s expertise in operational excellence, insourcing, fabrication and systems management.”

NFI has entered into an agreement with Colin Robertson, ADL’s CEO, and Michael Stewart, ADL’s chief financial officer, to continue leading ADL. They will also be tasked with leading NFI’s international growth strategy.

“We are incredibly proud of the growth and success we’ve had building Alexander Dennis over the past 15 years, and I’m excited to have the ADL team join NFI – one great bus company joining another,” says Robertson. “We believe our 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.”

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