Supreme Industries to divest shuttle-bus business for $7M
Commercial vehicles manufacturer Supreme Industries Inc announced that it has entered a deal to sell off its shuttle-bus division to focus on its core products. The divestment is valued at $7 million, according to Goshen News.
Under the terms of the exit deal, recreational vehicle manufacturer Forest River will acquire the shuttle-business from Supreme. The sale is expected to be completed after 30 days, the report detailed.
Supreme president Mark D. Weber outlines the intention of the sale: "We are pleased to have reached a mutually beneficial agreement for the sale of our shuttle-bus assets to Forest River. The bus market has become increasingly competitive and this business has been unable to achieve our profitable growth objectives. This divestiture allows us to concentrate our resources on growing our work truck, specialty vehicle and trolley businesses."
According to The Wall Street Transcript, Weber's company will use the proceeds from the transaction to fuel its growth and expansion efforts.
Forest River is a company that manufactures recreational vehicles, shuttle buses, and transit buses, Goshen News reported.