NFI Group Inc. and GILLIG LLC have established a 50/50 joint venture to acquire the assets of American Seating Inc., a manufacturer of seats for transit, motorcoach, and rail applications.
The transaction aims to reinforce supply chain stability within the North American public transport manufacturing sector.
The new entity, named GR Seating, LLC, will take ownership of American Seating’s core assets, including its equipment, inventory, brand, and intellectual property. Operations will continue at American Seating’s existing facility in Grand Rapids, Michigan. The company will retain its relationship with the United Automobile, Aerospace and Agricultural Implement Workers of America (UAW) and Local No. 135.
Under the arrangement, NFI and GILLIG will each hold an equal share and appoint representatives to GR Seating’s Board of Directors. The board will oversee an independent management team responsible for day-to-day operations. Both parent companies will remain focused on governance rather than operational management.
Paul Soubry, President and Chief Executive Officer, NFI said:Today’s acquisition displays NFI’s commitment to strengthening the industry’s supply chain and delivering for our customers. American Seating has been a long-time supplier to the North American heavy-duty transit industry, recognised for the quality of its products and the breadth of its offering. While American Seating has faced recent challenges, we are confident that through this joint venture we will stabilise and enhance performance, ensuring more consistent supply for their customers and the millions of riders who use their seats every day.
The joint venture will collaborate with members of American Seating’s former leadership, including former Chairman Ed Clark and former President and Chief Executive Officer Tom Bush, to facilitate a smooth transition. The plan includes investment in equipment and facilities to support production capacity and delivery performance.
Derek Maunus, President and Chief Executive Officer, GILLIG said:This strategic acquisition shores up a critical piece of the industry’s supply chain while reinforcing GILLIG’s commitment to our customers’ success. In this partnership with NFI, we aim to put the health and stability of the transit industry above all else. We are committed to the success of American heavy-duty transit, and this investment is another way we will continue to drive America forward.
American Seating will continue to provide aftermarket support for buses currently in operation and will maintain its relationships with customers and suppliers as the new ownership structure takes effect.
