Alexander Dennis (ADL) has been bought by NFI Group Inc. (NFI), North America’s largest coach and bus builder, for £320m.
The ADL and Plaxton brands will be retained, and CEO Colin Robertson will remain in place to lead the business, along with Chief Financial Officer Michael Stewart.
The two companies say their aims are not to cut jobs or rationalise, but to focus on collaboration and sharing best practice. ADL will help to drive NFI’s international growth ambitions.
They say they have similar cultures and values around quality and customer service, and a ‘clear alignment’ in management strategy, market outlook and expectations for electric vehicles. They have previously worked together on a joint venture in North America.
ADL’s primary shareholders, including Colin Robertson and Michael Stewart, retain an equity interest the business, and have been issued shares in NFI as part of the deal.
Paul Soubry, NFI’s President and CEO, says: “This is a transformational acquisition for NFI to become a global bus manufacturer.
“ADL is the UK’s number one bus manufacturer and the number one global producer of double-deck buses.
“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.”
For ADL, Mr Robertson says: “I’m excited to have the ADL team join NFI – one great bus company joining another.
“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.”
Based in Falkirk, Scotland, ADL employs 2,500 people. Its revenue in 2018 was £631 million, and it has 31,000 vehicles in service in the UK, Ireland, Europe, Hong Kong, Singapore, Malaysia, New Zealand, Mexico, Canada and the USA.
NFI has 6,300 employees and bases across Canada and the United States. It operates under the brands New Flyer (heavy-duty buses), ARBOC (low-floor and medium-duty buses), MCI (coaches), and NFI Parts (parts, support and service).