MCI Announces Signing Of Letter Of Intent To Acquire The Setra Business In The U.S. And Canada
SCHAUMBURG, Ill., April 25, 2012 /PRNewswire/ -- Motor Coach Industries International Inc. ("MCI") today announced the signing of a Letter of Intent with Daimler AG to acquire the Setra business in the U.S. and Canada and establish a strategic partnership with Daimler. The companies have agreed upon the material terms and conditions of the transaction and are working to finalize definitive agreements, which they expect to enter and consummate not later than May 31, 2012. Upon consummation of the transaction, Daimler Buses would receive a minority ownership stake in MCI, and MCI would become the exclusive North American (U.S. and Canada) distributor of the Setra S407 and S417 motor coaches.
Rick Heller, MCI CEO, said, "The proposed transaction would allow MCI to expand its luxury motor coach offerings in the North America marketplace, while establishing a strategic partnership with one of the world's leading manufacturers of buses and motor coaches. If consummated, we would intend to fully leverage the capabilities of MCI's marketing and distribution networks on behalf of the world-renowned Setra brand. We expect the partnership would also allow MCI access to Daimler's world-class engineering and manufacturing capabilities. In addition to our planned consolidation of operations to realize efficiencies and other benefits, the strategic intent of the proposed transaction is to maintain the integrity of the MCI and Setra brands, parts and services."
"We look forward to welcoming the Setra brand to the MCI lineage of best selling models," said Patricia Ziska, MCI vice president of new coach private sector sales. "Our dedication at exceeding customer expectations with the strongest, most reliable service and support infrastructure in the industry will apply to Setra customers who would benefit from this new venture.""MCI is excited by the prospects of partnering with Daimler and the long term stability we expect Daimler's ownership position to provide," Rick Heller added. "The potential partnership will only strengthen MCI's pursuit of unsurpassed reliability, quality and support in the years to come." For more than 25 years, Setra has been part of the North American motor coach industry providing upscale operators with German engineering and European styling.
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