Leading Queensland based bus builder, Bustech and South Australian based bus maker, and Precision will merge following an agreement between the two companies and their shareholders and boards.
Fusion Capital Holdings, the owner of Precision Buses, and Bustech have reached an agreement for the merger of Precision Buses and Bustech and the transaction is expected to be completed in the coming weeks.
A joint statement says each brand will continue to operate in its own capacity at respective facilities in South Australia and Queensland, however they will both retain their own brand identities, while combining strategic management and direction under a new holding company, Australian Bus Corporation, which will be a wholly owned subsidiary of Fusion.
The statement says that the merge is the ‘next step in a partnership which commenced in 2016 and which follows the recently announced join venture between the two companies’.
Together they have already achieved a number of significant milestones, including the recently awarded10-year Adelaide Metro bus supply contract for the South Australian Government.
“The strategic integration of Precision Buses and Bustech will see a strong focus on increasing both capacity and technical collaboration, with combined capabilities putting the companies in good stead to address emerging opportunities from advancement in market driven changes and driveline technology,” the statement said.
It went on to say “with strong demand from customers across five states, combining the two teams from an engineering and technology perspective provides great opportunities at a pivotal time for the Australian bus industry”.
Production out put under the new merger is expected to exceed 300 vehicles within the first year.
“This is an exciting time for both Precision Buses and Bustech. Combining these two businesses allows us to create a strong platform to collaborate withour combined suppliers and customers, to ensure we are developing product for the future of mobility in Australia,” said managing director of Precision Buses, Christian Reynolds.
Bustech was established by long time Gold Coast bus operators Joe and Tony Calabro in 1995 and together with LukeGray, the company has become an industry leader in bus manufacturing and operations for more than 20 years.
The Calabro brothers say the company was born out of frustration with the lack of innovation and limited body building options available at the time for its use on the brother’s Surfside Buslines fleet.
Fusion Capital, director,Mat Fitch said it was important to recognise the legacy that Bustech had created.
“When the opportunity to merge with Bustech arose, we jumped at it. Bustech has long been recognised as an innovator in the bus industry through the vision and foresight of Joe, Tony and Luke,” said Mal Fitch.
“They have created great brand equity over a number of years and we look forward to building on the fantastic platform that has been created,” he added.
“Bustech has worked closely with the owners of Precision Buses for a number of years now, and we have no doubt that Bustech is in safe hands – the merger was a natural next step given the successes we have had working together,” said director of Bustech Luke Grey.
“Joe, Tony and myself will continue to support Bustech through the post-merger period to ensure customers continue to receive great service and the quality buses Bustech is recognised for,” he added
The new merged organisation says that with strong forward-orders and growing market demand, they expect to increase their skilled workforce to provide additional capacity at both sites to meet demand and fulfill the group’s technology and innovation plans.