(BRK.A), (BRK.B)
In a move signaling its continued growth and leadership within the transportation industry, Forest River Bus, LLC., a subsidiary of Berkshire Hathaway-owned Forest River, Inc., has acquired Collins Bus, one of the oldest and most esteemed school bus builders in the United States.
The deal was for $303 Million in cash.
A subsidiary of REV Group, Collins Bus boasts a storied legacy spanning over half a century, originating in 1967 in Kansas City, Missouri, before relocating to Hutchinson, Kansas. Recognized for its unwavering dedication to safety, durability, and reliability, Collins Bus revolutionized the industry with its pioneering development of the Type A school bus. This innovation catalyzed a succession of advancements, solidifying Collins buses as the epitome of versatility and trustworthiness nationwide.
Pete Liegl, President and CEO of Forest River, Inc., commented on the acquisition, stating, “The addition of Collins Bus to the Forest River Bus family signifies another milestone in our continued growth and industry leadership. Our Bus and Van division is a beacon of success for Forest River, and this acquisition further elevates our standards.”
David Wright, President of Forest River Bus, expressed excitement about the union, emphasizing, “We are delighted to welcome Collins Bus into the Forest River family. This acquisition merges the strengths and legacies of two industry titans. Collins Bus brings with it a remarkable history, an unwavering commitment to excellence, and a team of dedicated professionals. We cherish their heritage and anticipate building upon their achievements.”
Wright underscored the significance of prioritizing both products and people, stating, “Our focus extends beyond manufacturing to encompass our valued employees. The skilled and passionate individuals at Collins Bus are invaluable assets, and we eagerly anticipate collaborating with them to deliver superior school buses that prioritize student safety and well-being.”
Forest River’s acquisition of Collins Bus underscores a shared dedication to upholding the highest standards in manufacturing, customer service, and product innovation. Forest River pledges to honor Collins Bus’s legacy while integrating its own innovative approaches to enhance product offerings.
REV Group announced it will be exiting transit bus manufacturing by winding down operations at its ElDorado National-California business, which is expected to be substantially completed by the end of fiscal year 2024, once existing customer orders are completed and delivered.
© 2024 David Mazor
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell a stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.