REV Group Completes Sale of ENC, its Transit Bus Business
REV Group, Inc. (NYSE: REVG), a manufacturer of specialty vehicle brands, has completed the sale of ElDorado National (California), Inc. (ENC), its transit bus business, to Rivaz, Inc. for approximately $52 million. This move aligns with REV Group's earlier announced plans to exit the bus manufacturing business.
The company intends to use the net proceeds from the sale to pay down outstanding borrowings under its ABL credit facility. Mark Skonieczny, President and CEO of REV Group, expressed gratitude to ENC's customers, employees, and dealers for their support during the transition period, noting ENC's five-decade-long history in the mass transit industry.
REV Group, Inc. (NYSE: REVG), un produttore di marchi di veicoli speciali, ha completato la vendita di ElDorado National (California), Inc. (ENC), la sua attività di autobus di transito, a Rivaz, Inc. per circa $52 milioni. Questa mossa è in linea con i piani precedentemente annunciati da REV Group per uscire dal settore della produzione di autobus.
La società intende utilizzare i proventi netti dalla vendita per ridurre i prestiti in corso ai sensi della sua linea di credito ABL. Mark Skonieczny, Presidente e CEO di REV Group, ha espresso gratitudine ai clienti, dipendenti e rivenditori di ENC per il loro supporto durante il periodo di transizione, sottolineando la lunga storia di cinque decenni di ENC nell'industria del trasporto di massa.
REV Group, Inc. (NYSE: REVG), un fabricante de marcas de vehículos especiales, ha completado la venta de ElDorado National (California), Inc. (ENC), su negocio de autobuses de tránsito, a Rivaz, Inc. por aproximadamente $52 millones. Este movimiento está alineado con los planes previamente anunciados por REV Group para saldar su participación en la fabricación de autobuses.
La compañía tiene la intención de utilizar los ingresos netos de la venta para pagar deudas pendientes bajo su línea de crédito ABL. Mark Skonieczny, Presidente y CEO de REV Group, expresó su agradecimiento a los clientes, empleados y distribuidores de ENC por su apoyo durante el período de transición, destacando la historia de cinco décadas de ENC en la industria del transporte masivo.
REV Group, Inc. (NYSE: REVG), 특수 차량 브랜드의 제조업체가 ElDorado National (California), Inc. (ENC), 대중교통 버스 사업부를 Rivaz, Inc.에 약 $52 백만에 판매를 완료했습니다. 이 조치는 REV Group이 버스 제조 사업에서 철수하기로 한 계획과 일치합니다.
회사는 판매로 얻은 순수익을 사용하여 ABL 신용 시설에 대한 미지급 대출금을 상환할 계획입니다. REV Group의 대통령 겸 CEO인 Mark Skonieczny는 전환 기간 동안 ENC의 고객, 직원 및 대리점에 대한 감사의 뜻을 표명하며 ENC의 대중교통 산업에서의 50년 역사를 언급했습니다.
REV Group, Inc. (NYSE: REVG), un fabricant de marques de véhicules spéciaux, a achevé la vente d'ElDorado National (Californie), Inc. (ENC), son activité de bus de transit, à Rivaz, Inc. pour environ 52 millions de dollars. Ce mouvement s'aligne avec les plans précédemment annoncés par REV Group pour quitter le secteur de la fabrication de bus.
L'entreprise a l'intention d'utiliser les produits nets de la vente pour rembourser des emprunts en cours dans le cadre de sa ligne de crédit ABL. Mark Skonieczny, Président et PDG de REV Group, a exprimé sa gratitude aux clients, employés et distributeurs d'ENC pour leur soutien durant la période de transition, soulignant l'histoire de cinq décennies d'ENC dans l'industrie du transport de masse.
REV Group, Inc. (NYSE: REVG), ein Hersteller von Spezialfahrzeugmarken, hat den Verkauf von ElDorado National (California), Inc. (ENC), seinem Nahverkehrsbusgeschäft, an Rivaz, Inc. für ca. 52 Millionen USD abgeschlossen. Dieser Schritt steht im Einklang mit den zuvor angekündigten Plänen von REV Group, aus dem Busbaugeschäft auszutreten.
Das Unternehmen beabsichtigt, die Nettoerlöse aus dem Verkauf zu nutzen, um ausstehende Darlehen im Rahmen seiner ABL-Kreditfazilität zu tilgen. Mark Skonieczny, Präsident und CEO von REV Group, dankte den Kunden, Mitarbeitern und Händlern von ENC für ihre Unterstützung während der Übergangszeit und hob die fünf Jahrzehnte lange Geschichte von ENC in der öffentlichen Verkehrsmittelbranche hervor.
- Sale of ENC transit bus business for $52 million
- Proceeds to be used to reduce outstanding borrowings
- Successful execution of planned exit from bus manufacturing business
- Divestment of a long-standing business segment with five decades of history
Insights
The sale of ElDorado National (California), Inc. (ENC) for
- Improved financial flexibility: The proceeds will be used to pay down debt, potentially reducing interest expenses and improving the company's balance sheet.
- Streamlined operations: Exiting the bus manufacturing segment allows REV Group to focus on its core specialty vehicle brands, potentially improving overall efficiency and profitability.
- Short-term impact: While the sale may result in a temporary revenue decrease, it could lead to improved margins and return on invested capital in the long run.
Investors should monitor how effectively REV Group redeploys resources from this divestiture into its remaining business segments. The company's ability to execute its strategic shift and demonstrate improved financial performance in the coming quarters will be important for stock performance.
This divestiture reflects broader industry trends and market dynamics:
- Consolidation in the bus manufacturing sector: Smaller players are being acquired or exiting, potentially due to challenges like electrification and increased competition.
- Focus on core competencies: Many conglomerates are streamlining their portfolios to concentrate on areas where they have a competitive advantage.
- Shift in urban mobility: The transit bus market may be facing disruption from ride-sharing and emerging technologies, influencing REV Group's decision to exit.
The
“ENC has a long history with five decades in the mass transit industry, so we are delighted the brand is set to continue under Rivaz. I want to thank our customers as well as ENC employees and dealers for their support during this period of transition,” said Mark Skonieczny, President and CEO of REV Group.
About REV Group, Inc.
REV Group companies are leading designers and manufacturers of specialty vehicles and related aftermarket parts and services, which serve a diversified customer base, primarily in
View source version on businesswire.com: https://www.businesswire.com/news/home/20241017634702/en/
Investor Relations
Drew Konop
VP Investor Relations & Corporate FP&A
+1.262.957.4594 (mobile)
investors@revgroup.com
Media Relations
Julie Nuernberg
Sr Director Marketing & Communications
+1.262.389.8620 (mobile)
julie.nuernberg@revgroup.com
Source: REV Group, Inc.
FAQ
What company did REV Group (REVG) sell its transit bus business to?
How much did REV Group (REVG) receive for the sale of ENC?
What will REV Group (REVG) do with the proceeds from the ENC sale?
Why did REV Group (REVG) sell its transit bus business?
