REV Group, a manufacturer of specialty vehicle brands and provider of parts and services, acquired Ferrara Fire Apparatus, a custom fire apparatus and rescue vehicle manufacturer.
Concurrently, REV refinanced its debt facilities to include a new $350 million ABL revolving credit facility and a $75 million five-year term loan. According to a related 8-K filing, Ally Bank served as administrative agent and collateral agent for the ABL. Ally and BMO Harris were joint bookrunners and joint lead arrangers. Ally was sole bookrunnner and sole lead arranger for the term loan.
The ABL provides for revolving loans and letters of credit in an aggregate amount of up to $350 million. The total ABL facility is subject to a $30 million sublimit for swingline loans and a $35 million sublimit for letters of credit, along with certain borrowing base and other customary restrictions as defined in the ABL Agreement. The ABL allows for incremental facilities in an aggregate amount of up to $100 million plus the excess, if any, of the borrowing base then in effect over total commitments then in effect.
The Ferrara product portfolio includes multiple fire apparatus configurations tailored to the specific requirements and demands of the fire service industry – including custom-builds on their own chassis as well as solutions on commercially available chassis such as Freightliner and International. This acquisition enhances REV’s product offering in its Fire Group within its Fire & Emergency segment, particularly with custom chassis pumpers, aerials, and industrial apparatus.
“We are pleased to welcome Ferrara to the line-up of our premier portfolio of fire brands which includes E-ONE and KME,” said Dan Peters, president of REV Fire Group. “The Ferrara brand has a long history of product innovation built around a commitment to heavy duty vehicle construction.” Peters added, “The addition of Ferrara to the REV Fire Group enables a number The addition of Ferrara to the REV Fire Group enables a number of new growth opportunities including expansion of our reach nationwide and adding new geographical regions and key accounts.”
Headquartered in Holden, LA, Ferrara employs more than 450 employees with annual revenue of approximately $140 million. The acquisition of Ferrara Fire Apparatus closed on April 25, 2017.
REV serves a diversified customer base primarily in the U.S. through three segments: fire/emergency, commercial and recreation.