NFI, Gillig form 50/50 JV to acquire American Seating

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.
• The acquisition secures a critical component of the North American transit industry's supply chain, positioning American Seating for operational recovery and long-term stability.
• Operations will continue at existing facilities in Grand Rapids, Michigan, under the American Seating name, with the UAW labor agreement maintained.

Key Details

• Transaction Structure: A 50/50 joint venture between NFI Group Inc. and Gillig LLC.
• Target: American Seating Inc., a producer of seats for transit, motorcoach, and rail applications.
• Joint Venture Name: GR Seating LLC.
• Assets Acquired: American Seating's key assets, including equipment, inventory, brand, and intellectual property.
• Operational Continuity:
  • Operations continue at existing facilities in Grand Rapids, Michigan.
  • Branding remains "American Seating."
  • Partnership with The United Automobile, Aerospace and Agricultural Implement Workers of America (UAW) and UAW Local No. 135 is maintained.
  • Aftermarket business and customer/supplier relationships are maintained.
• Governance:
  • Each manufacturer has representation on the joint venture's board of directors.
  • An independent third-party management team handles day-to-day operations; neither NFI nor Gillig is involved in daily operations.
• Strategic Goals:
  • Work with previous ownership (former chairman Ed Clark and former CEO Tom Bush) for a smooth transition.
  • Increase throughput and improve delivery timelines.
  • Make dedicated investments in equipment and facilities to support the management team's recovery plan.

Notable Quotes

• Paul Soubry, President and CEO, NFI: "Today's acquisition displays NFI's commitment to strengthening the industry's supply chain and delivering for our customers... 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."
• Derek Maunus, President and CEO, Gillig: "This strategic acquisition shores up a critical piece of the industry's supply chain while reinforcing Gillig's commitment to our customers' success... we aim to put the health and stability of the transit industry above all else."