Goshen, Ind.,-based Supreme Industries, Inc. has reached an agreement to sell its shuttle-bus business to Elkhart, Ind.,-based Forest River, the company announced Friday.
The deal is expected to bring $7 million in net proceeds to Supreme Industries, which manufactures specialized commercial vehicles that can include truck bodies.
Forest River, which is owned by Berkshire Hathaway, manufacturers a line of transit buses, shuttle buses, and tour coaches.
"The bus market has become increasingly competitive, and this business has been unable to achieve our profitable growth objectives," said Mark D. Weber, Supreme's president and CEO. "This divestiture allows us to concentrate our resources on growing our work truck, specialty vehicle and trolley businesses."
Supreme management decided to sell off the shuttle-bus business in December. The transaction is expected to close in 30 days.
Supreme Industries provides a variety of speciality vehicles such as utility-truck bodies, van bodies, cube van bodies, and box trucks for dry freight, parcel delivery, furniture and moving vans, lanscaping, homeland security and armored SWAT response vehicles.