A new deal announced last week will bring two suppliers of propane engines for school buses together.
Power Solutions International Inc., 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, according to School Bus Fleet.
Under the agreement, PSI will purchase the assets of PI and assume some liabilities. The purchase price is reportedly $21.6 million in cash and targeted contingent consideration of $8 million in cash. The acquisition is expected to be complete in approximately 30 days.
PI has been a long-time provider of General Motors powertrain solutions for niche on-highway OEMs and fleets, and specialized in alternative-fuel and gasoline systems.
“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 says customers shouldn’t worry, however as PSI will provide the same support for PI’s current General Motors engine programs, as well as its 8.0-liter V8 powertrain. He also says that PSI sees potential for growing the propane school bus market as well as the non-diesel RV market.
