Supreme Industries Inc. will sell its shuttle-bus assets to Forest River Inc.
The Goshen (Ind.) News reported that in December Supreme management announced it would sell the shuttle-bus business. Forest River, headquartered in Elkhart, will buy the division for about $7 million, depending on bus sales before the deal is finalized.
Supreme is making the move to focus on its core work truck and specialty vehicle markets. The company customizes vehicles.
Supreme announced in a statement Friday (Feb. 28) a modest gain on the sale is anticipated and the proceeds will be used to fund a series of growth initiatives, capital expenditures and margin expansion projects. The transaction is expected to close within 30 days.
“We are pleased to have reached a mutually beneficial agreement for the sale of our shuttle-bus assets to Forest River,” said 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 is a Berkshire Hathaway company and manufactures transit buses, shuttle buses and tour coaches as well as recreational vehicles.