NFI acquires Alexander Dennis in £320million deal

Alexander Dennis has been acquired by NFI Group Inc, North America’s largest bus and coach manufacturer whose brands include new Flyer and MCI. The £320million deal creates an independent global group that has leading market positions in the UK, North America and Hong Kong as well as a growing presence in Asia Pacific, Latin America and Europe.

ADL will retain its own brand and chief executive Colin Robertson, who has led the growth and internationalisation of the company over more than ten years, alongside chief financial officer Michael Stewart.

ADL employs more than 2,500 and has more than 31,000 vehicles in service with operations in the United Kingdom, Ireland, Europe, Hong Kong, Singapore, Malaysia, New Zealand, Mexico, Canada and the United States.

NFI employs 6,300 people, operating from facilities across Canada and the United States.

The two companies claim they share similar cultures and values regarding quality and customer experience, as demonstrated in their prior joint venture in North America and have agreed positions on management strategy, market outlook, and electric vehicle adoption expectations. They claim the objective is not to cut jobs or rationalise, but to focus on collaboration and best practice sharing with ADL continuing to pursue its strategic plans.

“This is a transformational acquisition for NFI to become a global bus manufacturer,” says Paul Soubry, NFI president and chief executive officer. “ADL is the UK’s number one bus manufacturer and the number one global producer of double-deck buses, with an established international presence and is recognised 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.”

ADL chief executive Colin Robertson, adds: “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.

“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.”

In 2018 ADL generated revenues of £631million, having grown at a compound annual growth rate of 10.5 per cent since 2010.

ADL’s primary shareholders, including Colin Robertson and Michael Stewart, retain an equity interest in the business, having been issued shares in NFI Group Inc as part of the transaction.

NFI shares are traded on the Toronto Stock Exchange.

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