REV Group, Inc., has completed the sale of its two shuttle bus businesses to Forest River effective May 8.
Proceeds from the sale will be used to pay outstanding borrowings under the company’s ABL debt facility. Financial details have been described within a current report on Form 8-K that was filed with the SEC.
“We continue to review our businesses and align the portfolio to achieve our strategic objectives and create shareholder value,” said Rod Rushing, president and CEO, REV Group. “The divestiture of our shuttle bus business provides an opportunity to improve our portfolio profitability, reduce debt and renew our focus on reducing our leverage. We are committed to improving our operations to achieve best-in-class performance in each of our business segments. I appreciate the hard work and dedication of our shuttle business employees and wish them success.”
Forest River, Inc., will acquire the following REV Group shuttle bus brands: Champion Bus, Federal Coach, World Trans, Krystal Coach, ElDorado and Goshen Coach. These brands are produced in Michigan and Kansas. This product line provides transportation for colleges, churches, assisted living facilities, retirement communities, transportation companies and government agencies.
“We are excited to welcome Champion Bus and ElDorado to Forest River. Both organizations have built a history of integrity, quality and innovation and enjoy an excellent reputation in our industry today,” said David Wright, of Forest River. “As we navigate these challenging times, the addition of these historic and iconic brands to the Forest River family enhance our ability to provide products and a customer experience that is second to none. We look forward to working with our dealer partners as we better position Forest River’s shuttle bus divisions for the future.”
