MCI finalizes Setra acquisition and Daimler partnership
Motor Coach Industries, Inc. (MCI) has completed its acquisition of Setra’s operations in the U.S. and Canada and the establishment of a strategic partnership with Daimler Buses (Daimler).
Through the acquisition, MCI obtains responsibility for sales and service support of Setra S 417 and Setra S 407 motor coach models; the company’s pre-owned coach inventory; the distribution of Setra and related genuine Daimler Buses parts; and the operations of Setra’s service center in Orlando, FL.
Daimler has also assumed a minority ownership position in MCI, forming an engineering, technology and manufacturing alliance as part of the transaction. Final terms of the agreement have not been disclosed.
Rick Heller, MCI CEO, said, “This transaction strengthens MCI’s luxury motor coach offerings in the North American marketplace with the Setra brand, while establishing a strategic partnership with the world’s leading manufacturer of motor coaches. While we expect to integrate our internal operations, the strategic intent is to maintain the integrity of the MCI and Setra brands. This includes maintaining a separate new-coach sales effort. Much of the consolidation will occur in internal and support functions, and we will communicate these changes with our customers as quickly as possible.”
“We expect the transition to take about 150 days to complete, with minimal disruptions to both MCI’s and Setra’s customers,” added Sandra Morison, MCI’s Chief Financial Officer. “Our goal is to quickly integrate Setra’s support processes within MCI’s current network.”