By Will Feuer
Rev Group has sold its school-bus manufacturing business for $303 million, leaving the specialty-vehicle maker to focus on recreational vehicles and fire-and-emergency vehicles.
The company said it struck a deal to sell its Collins Bus Corp. business to Forest River Bus for $303 million in cash. Separately, Rev Group said it decided to shut down its El Dorado National-California business, which makes transit buses.
Chief Executive Mark Skonieczny said the rise of electric vehicles and supply-chain challenges have weighed on the pricing of diesel and compressed natural gas buses. That made it a challenge to run the transit-bus business profitably.
The company said it expects to generate at least $250 million in cash from the moves. Rev Group plans to pay a special cash dividend of $3 a share.
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