NFI Group and GILLIG on Oct. 22 reported forming a 50/50 joint venture, GR Seating, LLC, to acquire the assets of Michigan-based American Seating Inc., a producer of seats for rail and bus applications.
The joint acquisition by the two heavy-duty transit bus manufacturers is said to secure “a critical component of the transit industry’s supply chain and positions American Seating for operational performance recovery and long-term stability to the benefit of all customers.”
GR Seating, LLC, will assume ownership of American Seating’s key assets including its equipment, inventory, brand, and intellectual property, according to Manitoba, Canada-based NFI Group and California-based GILLIG. Operations, they said, will continue at the existing facilities in Grand Rapids, under the American Seating name, and the partnership with The United Automobile, Aerospace and Agricultural Implement Workers of America, and UAW Local No. 135 will be maintained. The company will also support buses in the field through its aftermarket business and will maintain customer and supplier relationships.
NFI Group and GILLIG reported that they both will have representation on GR Seating, LLC’s Board of Directors, which “will provide governance and oversight to an independent third-party management team.” Neither NFI Group nor GILLIG will be involved in day-to-day operations.
“The joint venture will be working closely with the previous ownership team, including former Chairman, Ed Clark, and former President and CEO, Tom Bush, to ensure a smooth transition while also driving forward a strategy to increase throughput and improve delivery timelines to customers,” NFI Group and GILLIG said. “The joint venture has committed to making dedicated investments in equipment and facilities to enable employees’ success and support the management team’s recovery plan.”
“Today’s [Oct. 22] acquisition displays NFI’s commitment to strengthening the industry’s supply chain and delivering for our customers,” said Paul Soubry, President and CEO of NFI Group, which offers a wide range of propulsion agnostic bus and coach platforms, including electric models. “American Seating has been a long-time supplier to the North American heavy-duty transit industry, recognized for the quality of its products and the breadth of its offering. While American Seating has faced recent challenges, we are confident that through this joint venture we will stabilize and enhance performance, ensuring more consistent supply for their customers and the millions of riders who use their seats every day.”
“This strategic acquisition shores up a critical piece of the industry’s supply chain while reinforcing GILLIG’s commitment to our customers’ success,” noted Derek Maunus, President and CEO of GILLIG, which offers a portfolio of low and zero-emission propulsion options. “In this partnership with NFI, we aim to put the health and stability of the transit industry above all else. We are committed to the success of American heavy-duty transit, and this investment is another way we will continue to drive America forward.”
