Blue Bird Corporation Special Committee Finds American Securities LLC Proposal Inadequate
Blue Bird Corporation (Nasdaq: BLBD) (the “Company”), the leading
independent designer and manufacturer of school buses, announced today
that the special committee of its board of directors (the “Special
Committee”) has rejected the July 20, 2016 proposal from American
Securities LLC (“American Securities”), pursuant to which ASP BB
Holdings LLC, an entity owned by affiliated funds managed by American
Securities, would acquire all of the remaining equity of the Company
that ASP BB Holdings LLC does not currently own, excluding Company
common stock held by management, at a valuation of $12.80 to $13.10 per
share of common stock. After careful review, and based in part on the
advice and analysis of its financial advisor, the Special Committee
determined that American Securities’ proposed valuation is inadequate
and undervalues the Company.
The Special Committee, with the assistance of its financial advisor, is
prepared to enter into discussions with American Securities to determine
if the proposed valuation can be increased to adequately reflect the
full value of the Company. The Special Committee is willing to consider
any amended proposal from American Securities and any proposals that any
third parties might put forward.
The Company stated that there can be no assurance that discussions or
negotiations with American Securities or any other party will result in
any transaction. The Special Committee intends to act expeditiously, but
there is no timetable for its discussions with American Securities or
any other parties. The Company does not undertake any obligation to
provide any updates with respect to any transaction, except as required
by applicable law. As announced on August 3, 2016, the Special Committee
was formed in response to the American Securities proposal and is
comprised of three independent directors. The Company’s board of
directors has delegated to the Special Committee certain power and
authority, including the power and authority to evaluate and negotiate
the terms and conditions of the proposed transaction with American
Securities and any alternative transaction to such proposed transaction,
solicit from third parties proposals for alternative transactions to the
extent the Special Committee deems appropriate and reject or approve the
proposed transaction with American Securities.
The Special Committee has engaged Evercore to act as its financial
advisor and has retained Sidley Austin LLP as its legal counsel.
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.
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Copyright Business Wire 2016
Source: Business Wire
(September 1, 2016 - 4:01 PM EDT)
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