In December 2013, management announced Supreme would exit the shuttle-bus business and divest the associated assets, according to a news release. Supreme said its long-term strategy is to focus on its core work truck and specialty vehicle markets.
Net proceeds from the sale of assets are estimated to be about $7 million dependent upon sales of buses before to close. A modest gain on the sale is anticipated and the proceeds will be used to fund a series of topline growth initiatives, capital expenditures and margin expansion projects, according to Supreme. The transaction is expected to close within thirty days.
“We are pleased to have reached a mutually beneficial agreement for the sale of our shuttle-bus assets to Forest River,” stated Mark D. Weber, Supreme’s president and chief executive officer.
“The bus market has become increasingly competitive and this business has been unable to achieve our profitable growth objectives,” he added. “This divestiture allows us to concentrate our resources on growing our work truck, specialty vehicle and trolley businesses.”
Forest River Inc., an Indiana-based Berkshire Hathaway Company, manufactures a full line of RVs, transit buses, shuttle buses and tour coaches.