WOOD DALE, Ill. — Two suppliers of propane engines for school buses will join forces under a deal announced last week.
Power Solutions International Inc. (PSI), which provides an 8.8-liter engine for IC Bus’ new propane CE Series school bus, agreed to purchase Powertrain Integration (PI), which supplies an 8.0-liter V8 engine for Thomas Built Buses’ propane C2 school bus.
The agreement provides for the purchase of the assets of PI and the assumption of certain liabilities. The purchase price consists of $21.6 million in cash and targeted contingent consideration of $8 million in cash. The acquisition is expected to close in about 30 days.
For more than 10 years, PI has provided General Motors powertrain solutions for niche on-highway OEMs and fleets. The company specializes in alternative-fuel and gasoline systems and offers design, engineering, testing and engine calibration.
“This acquisition fits perfectly into our on-highway strategy,” said Gary Winemaster, PSI’s chairman and CEO. “We’re not only expanding our product portfolio to give customers more options — we’re also adding PI’s years of on-highway experience, its technical expertise and its strong customer relationships to our own capabilities.”
PI President Robert Pachla added that the agreement “will strengthen and expand the on-highway business model we created 10 years ago at PI. We began as an engineering company and will build off of that expertise with PSI.”
Winemaster said that customers should expect “business as usual” in terms of supporting PI’s current General Motors engine programs as well as its 8.0-liter V8 powertrain. He added that PSI sees opportunity for expansion in the growing propane school bus market as well as the non-diesel RV market.