New members of the Board of Directors announced
FORT VALLEY, Ga.--(BUSINESS WIRE)--
Blue Bird Corporation (Nasdaq: BLBD), the leading independent designer
and manufacturer of school buses, announced today the closing of the
second and final tranche of the acquisition by an affiliate of American
Securities LLC from The Traxis Group B.V., an affiliate of Cerberus
Capital Management, L.P., of a total of 12 million shares of Blue Bird
common stock. This represents approximately 57% of Blue Bird’s
outstanding shares of common stock. American Securities is now the
controlling shareholder of Blue Bird.
This Smart News Release features multimedia. View the full release here:
http://www.businesswire.com/news/home/20160608006476/en/
As was announced in a press release dated May 27, 2016, the affiliate of
American Securities agreed to purchase from The Traxis Group its entire
equity stake in Blue Bird. The transaction was executed in two tranches.
The first tranche closed on June 3, 2016 and included seven million
shares at a price of $10.10 per share. The second tranche closed today
and included five million shares at a price of $11.00 per share. The
second tranche was contingent upon an amendment to Blue Bird’s credit
agreement, which was successfully executed on June 6, 2016.
Each closing was subject to certain conditions precedent, including
changes to the composition of the Board of Directors. Dev Kapadia and
Dennis Donovan have resigned as Directors of Blue Bird. Chan Galbato has
resigned as Chairman of Blue Bird, but will stay on as Director at the
request of American Securities. Kevin Penn and Michael Sand were elected
Directors. Mr. Penn will serve as a Class I Director with a term
expiring in 2018. Mr. Sand will serve as a Class III Director with a
term expiring in 2017.
“We are pleased that this closing went through so quickly.” said Phil
Horlock, President and CEO of Blue Bird. “I would like to thank Dev
Kapadia and Dennis Donovan for their years of service and significant
contribution to Blue Bird as Board members. Dev has been a Board member
since leading the acquisition of the business on behalf of Cerberus in
2006, and Dennis joined the Board in 2008. I would also like to welcome
Kevin Penn and Michael Sand of American Securities to the Board. The
leadership team at Blue Bird is looking forward to working with them.”
About American Securities
American Securities is a leading U.S. private equity firm with
approximately $15 billion under management. Based in New York with an
office in Shanghai, American Securities invests in market-leading North
American companies with annual revenues generally ranging from $200
million to $2 billion and/or EBITDA of $50 million to $200 million. For
more information, please visit http://www.american-securities.com.
About Cerberus Capital Management, L.P.
Cerberus is one of the world’s leading private investment firms. Founded
in 1992, Cerberus has excelled at distressed investing since its
inception and has built a highly regarded reputation for its focus on
deep value.
Cerberus and its affiliates manage approximately $31 billion for many of
the world’s most respected investors, including government and private
sector pension and retirement funds, charitable foundations and
university endowments, insurance companies, family offices, sovereign
wealth funds and high net worth individuals. Cerberus directs its global
investment strategies from its headquarters in New York City, and draws
on the expertise of a network of advisory offices throughout the United
States, Europe, and Asia.
About Blue Bird Corporation
Blue Bird is the leading independent designer and manufacturer of school
buses, with more than 550,000 buses sold since its formation in 1927 and
approximately 180,000 buses in operation today. Blue Bird’s longevity
and reputation in the school bus industry have made it an iconic
American brand. Blue Bird distinguishes itself from its principal
competitors by its singular focus on the design, engineering,
manufacture and sale of school buses and related parts. As the only
manufacturer of chassis and body production specifically designed for
school bus applications, Blue Bird is recognized as an industry leader
for school bus innovation, safety, product
quality/reliability/durability, operating costs and drivability. In
addition, Blue Bird is the market leader in alternative fuel
applications with its propane-powered and compressed natural gas-powered
school buses. Blue Bird manufactures school buses at two facilities in
Fort Valley, Georgia. Its Micro Bird joint venture operates a
manufacturing facility in Drummondville, Quebec, Canada. Service and
after-market parts are distributed from Blue Bird’s parts distribution
center located in Delaware, Ohio.
Forward Looking Statements
This press release includes forward-looking statements within the
meaning of the “safe harbor” provisions of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements relate
to expectations for future financial performance, business strategies or
expectations for our business. Specifically, forward-looking statements
include statements in this press release regarding guidance,
seasonality, product mix and gross profits and may include statements
relating to:
-
Inherent limitations of internal controls impacting financial
statements
-
Growth opportunities
-
Future profitability
-
Ability to expand market share
-
Customer demand for certain products
-
Economic conditions that could affect fuel costs, commodity costs,
industry size and financial conditions of our dealers and suppliers
-
Labor or other constraints on the Company’s ability to maintain a
competitive cost structure
-
Volatility in the tax base and other funding sources that support the
purchase of buses by our end customers
-
Lower or higher than anticipated market acceptance for our products
-
Other statements preceded by, followed by or that include the words
“estimate,” “plan,” “project,” “forecast,” “intend,” “expect,”
“anticipate,” “believe,” “seek,” “target” or similar expressions
These forward-looking statements are based on information available as
of the date of this press release, and current expectations, forecasts
and assumptions, and involve a number of judgments, risks and
uncertainties. Accordingly, forward-looking statements should not be
relied upon as representing our views as of any subsequent date, and we
do not undertake any obligation to update forward-looking statements to
reflect events or circumstances after the date they were made, whether
as a result of new information, future events or otherwise, except as
may be required under applicable securities laws. The factors described
above, as well as risk factors described in reports filed with the SEC
by us (available at www.sec.gov),
could cause our actual results to differ materially from estimates or
expectations reflected in such forward-looking statements.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160608006476/en/
Prosek Partners For American Securities
Caroline Harris-Gibson,
212-279-3115 x222
[email protected]
or
Sam
Reinhardt, 212-279-3115 x244
or
The Glover Park Group For
Cerberus Capital Management
Caroline Langdale, 646-495-2700
[email protected]
or
Andrew
Johnson, 646-495-2700
[email protected]
or
Blue
Bird Corporation
Jeff Merten, 478-822-2496
Investor Relations
& New Business Development
[email protected]
Source: Blue Bird Corporation