REV Group Inc., based in Brookfield, Wisconsin, announced it completed the sale of Collins Bus Corporation, its school bus business, to Forest River Bus, LLC for $303 million. The manufacturer plans these strategic actions aimed at optimizing it product portfolio and balance sheet.

“We have a long and successful history with Collins that dates back to the initial acquisition that started REV Group. We are pleased that the Collins team has a strategic new home with Forest River. I would like to thank the Collins team members for their contributions to REV Group and wish them continued success,” stated Mark Skonieczny, President and CEO of REV Group.

The company also announced it will exit transit bus manufacturing by the end of fiscal year 2024. Its operation at ElDorado National-California will wind down after it finishes and delivers existing customer orders.

“Delays in the supply of critical components and the build out of infrastructure to support EV adoption, as well as the financial health of key suppliers, has created a competitive bidding environment for diesel and CNG buses that has made it difficult for ENC to compete profitably versus peers of greater scale,” said Skonieczny. “The decision to wind down operations was not made lightly; however, based on the options available to us, we believe this is the best path forward for our business. I would like to thank our ENC employees, dealers, and customers for their commitment to ENC over the years.”

REV Group will be reorganized into two reporting segments beginning with its first quarter fiscal 2024 results. The remaining Commercial segment business will be combined with the Fire & Emergency businesses in a new segment named Specialty Vehicles, led by Mike Virnig, the current fire group president. The Recreation segment will be renamed Recreational Vehicles and will continue to be led by its current president, Mike Lanciotti. The company expects to provide updated fiscal 2024 guidance, including the impacts of these strategic actions, with its first quarter fiscal 2024 earnings release.

Read the full press release