NFI Group buys ADL for £320m
By Jim Gibbins - 1st June 2019
NFI Group Inc1 (NFI) of Winnipeg, Manitoba, Canada - North America’s largest and most diversified bus and coach manufacturer - has acquired Britain’s largest bus and coach builder, Alexander Dennis Ltd2 (ADL) of Larbert, Scotland for GBP320m (approximately USD405m); this represents an implied purchase multiple of 7.3 x ADL’s fiscal year 2018 adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) and on a cash-free, debt-free basis, subject to certain adjustments.
The companies stated the transaction creates an independent global bus and coach manufacturer with market leading positions in the United Kingdom, North America and Hong Kong plus a growing footprint elsewhere in Asia Pacific, Latin America and Europe. NFI stated ADL’s proven products and track record of entering and growing new markets would complement NFI’s product offering, diversify its business model and create a platform for international growth, accelerated technology development and innovation.
