NFI Group and GILLIG form 50/50 JV to Acquire the Assets of American Seating, Strengthening North American Seat Supply through Historic Industry Partnership

Executive Summary

• NFI Group Inc. and GILLIG LLC have formed a 50/50 joint venture, GR Seating, LLC, to acquire the assets of American Seating Inc., securing a critical component of the transit‑industry supply chain.
• The JV will own American Seating’s equipment, inventory, brand and IP, continue operations at the Grand Rapids facility under the American Seating name, and maintain existing labor agreements with UAW Local No. 135.
• Both partners will appoint board members to oversee an independent management team, while day‑to‑day operations remain with the existing team; dedicated investments in equipment and facilities are planned to drive performance recovery.

Key Details

• Joint Venture Structure: 50% ownership each by NFI Group Inc. (TSX: NFI) and GILLIG LLC; entity named GR Seating, LLC (“GR Seating”).
• Acquired Assets: All key assets of American Seating Inc., including manufacturing equipment, inventory, brand trademarks, and intellectual property.
• Operational Continuity: Production will continue at the existing Grand Rapids, Michigan facility under the “American Seating” name.
• Labor Relations: Existing collective bargaining agreement with The United Automobile, Aerospace and Agricultural Implement Workers of America (UAW) Local No. 135 will be maintained.
• Governance: Each partner appoints representatives to GR Seating’s Board of Directors; an independent third‑party management team handles daily operations.
• Transition Team: Former Chairman Ed Clark and former President/CEO Tom Bush will assist the JV during transition.
• Strategic Rationale (NFI): Strengthen supply chain stability for heavy‑duty transit bus manufacturers; improve delivery timelines and throughput for customers.
• Strategic Rationale (GILLIG): Secure a critical component of the industry’s supply chain, supporting long‑term stability and customer success.
• Investment Commitment: GR Seating has pledged dedicated capital expenditures to upgrade equipment and facilities, supporting employee success and the recovery plan.
• Quotes:
• “Today’s acquisition displays NFI’s commitment to strengthening the industry’s supply chain… we are confident that through this joint venture we will stabilize and enhance performance.” – Paul Soubry, President & CEO, NFI
• “This strategic acquisition shores up a critical piece of the industry’s supply chain… we are committed to the success of American heavy‑duty transit.” – Derek Maunus, President & CEO, GILLIG

Notable Quotes

• Paul Soubry (NFI): “American Seating has been a long‑time supplier … 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.”
• Derek Maunus (GILLIG): “In this partnership with NFI, we aim to put the health and stability of the transit industry above all else… this investment is another way we will continue to drive America forward.”