1whoknows wrote:It should not be assumed that the winner will be someone who already produces designs that Volgren have imitated.
LOT of $$ to take out a competitor Money better spent possibly building better product to competeAlex on the Bus wrote:use processes almost completely different to what Volgren uses and could only be assumed to be buying just to take out a competitor.
WSJ wrote:Australian buses are capturing Brazilian interest.
Grenda Corporation, which last month sold Grenda Transit Management to private bus operator Ventura, will sell a majority stake in Australia’s leading bus body builder Volgren to Brazilian Stock Exchange-listed Marcopolo for an undisclosed amount. The combined value for both transactions is believed to be around 500 million Australian dollars (US$504.5 million).
The Grenda family will retain local ownership through a 25% minority interest in Volgren — which has a market share of more than 40% in Australia — to ensure a smooth transition. For the financial year ending 30 June 2011, Volgren recorded revenue of A$207.1 million.
“We are particularly pleased to be associated with a company that shares our philosophy around people and are looking forward to working with them to ensure Volgren remains at its rightful place at the top of the Australian bus building industry,” Grenda chief executive Geoff Grenda said in a statement.
Mr. Grenda said the purchase was a positive endorsement of Volgren’s position as market leader and described its potential to grow both locally and offshore by joining the stable of one of the world’s largest bus manufacturers. Marcopolo has a turnover of around US$1.6 billion and produces around 30,000 buses a year from 11 plants around the world and the Volgren acquisition is part of its expansion strategy in foreign markets.
The Grenda family was advised by UBS, MGI Melbourne and Arnold Bloch Leibler while Marcopolo was advised by PWC.
Earlier this year, Grenda sold its 50% stake in Australian Transit Enterprises to joint venture partner Hornibrook Group.
MARCOPOLO EXPANDS ITS INTERNATIONAL OPERATIONS WITH THE ACQUISITION OF THE LARGEST AUSTRALIAN BUS MANUFACTURER
Volgren Australia Pty. Limited is the local leader and holds 40% market share
Marcopolo, the Brazilian leader in the production of bus bodies, announces that it has signed, yesterday, December 12th, agreement to acquire 75% stake in the company Volgren Australia Pty. Limited, based in Melbourne, Australia. With the deal, the company continues its plan to expand its activities in the international market and gets into Oceania.
The Volgren is the largest bus body builder from Australia and has over 560 employees. The company has a presence throughout Australia with over 40% market share. In the last fiscal year, from July/10 to June/11, the company recorded sales of 698 units, with revenues of A $ 207.1 million (Australian dollars), equivalent to about US$ 209 million.
The amount to be disbursed by the participation of 75% of Volgren consist of an anticipation of the $ 52.5 million Australian dollars and adjustments related to company performance based on EBITDA in the next three years. Marcopolo has the right to exercise the remaining 25% stake after three years.
According to Marcopolo´s CEO, Jose Rubens de la Rosa, Australia still has a small market compared to the Brazilian - about 2,000 units/year. The Volgren is specialized in the production of buses and holds the technology of aluminum bus bodies, which provides weight reduction and is fully recyclable.
Although still small, the Australian market has grown at an average of 12% per year and an opportunity to be studied in the future is the development and supply to other market segments, such as coaches, charter and tourism, as well as export to neighboring countries.
Peter1805 wrote:One thing which hasn't been publicized about the Grenda Transit sale/purchase is that there is apparently also a short-term minority player (a "minority shareholder" with an "exit strategy") involved in the deal.
B7RLE wrote:All our buses need roadworthys before the 3rd so maybe thats true but who knows
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