REV Group, a manufacturer of specialty vehicle brands, has completed the sale of its transit bus business, ElDorado National (California), Inc. (ENC), to Rivaz for $52m.
This move is part of a series of strategic actions to optimise REV Group’s product portfolio and balance sheet.
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REV Group president and CEO Mark Skonieczny said: “ENC has a long history with five decades in the mass transit industry, so we are delighted the brand is set to continue under Rivaz.
“I want to thank our customers as well as ENC employees and dealers for their support during this period of transition.”
The net proceeds from the sale will be used by REV Group to pay down outstanding borrowings under the company’s ABL credit facility.
In January this year, REV Group also sold its school bus business, Collins, to Forest River Bus for $303m in cash.
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By GlobalDataBack then, Skonieczny said: “Delays in the supply of critical components and the build out of infrastructure to support EV adoption, as well as the financial health of key suppliers, has created a competitive bidding environment for diesel and CNG buses that has made it difficult for ENC to compete profitably versus peers of greater scale.
“The decision to wind down operations was not made lightly; however, based on the options available to us, we believe this is the best path forward for our business. I would like to thank our ENC employees, dealers, and customers for their commitment to ENC over the years.”
Following the sale, REV Group’s remaining Commercial segment business will be merged with the Fire & Emergency businesses into a new segment named Specialty Vehicles, while the Recreation segment will be rebranded as Recreational Vehicles.
