Rev Group has sold one of its foundational businesses. Collins Bus, one of the companies that launched Allied Specialty Vehicles in 2010, the forerunner to Rev Group, has been sold to Forest River Bus, a Forest River subsidiary.
Rev Group said the 57-year-old shuttle and school bus manufacturer sold for $303 million. The sale coincides with Rev Group winding down its transit bus manufacturing operations at its ElDorado National-California (ENC) business.
Rev Group President and CEO Mark Skonieczny said, “We have a long and successful history with Collins that dates back to the initial acquisition that started Rev Group. We are pleased that the Collins team has a strategic new home with Forest River. I would like to thank the Collins team members for their contributions to REV Group and wish them continued success.”
Forest River said it was proud to acquire Collins Bus, a pioneer in developing a Type A school bus.
Forest River President and CEO Pete Liegl said, “The addition of Collins Bus to the Forest River Bus family highlights another milestone in our overall growth and leadership. The performance of our Bus and Van division is a shining star for Forest River, and this acquisition raises an already high bar.”
Forest River said the company was committed to preserving Collins Bus’ legacy while bringing its own ideas to enhance the company’s products.
Forest River Bus President David Wright said, “We are thrilled to welcome Collins Bus into the Forest River family. This purchase combines the strengths and heritage of two industry leaders. Collins Bus has a remarkable history, unwavering commitment to quality, and a team of dedicated employees. We value their legacy and look forward to building on their success.”
With the sale and ENC closure, Rev Group will reorganize its company into two divisions. The Recreation segment will be renamed Recreational Vehicles and remain under the oversight of President Mike Lanciotti. Commercial operations will be combined with the Fire and Emergency business in a segment called Specialty Vehicles.
Rev Group said proceeds from the sale and reorganization will fund a special cash dividend. A $3 dividend per share will be payable Feb. 16 to shareholders of record Feb. 9. Rev Group said the move would return about $180 million to company shareholders.
