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Blue Bird Corporation (NASDAQ:BLBD), currently maintaining a robust market capitalization of $1.79 billion and boasting a "GREAT" financial health score according to InvestingPro, announced Wednesday the termination of its joint venture with Generate Capital, Clean Bus Solutions, LLC. The decision was approved by the boards of both companies, and the process of winding down the joint venture and dissolving the legal entity will begin immediately, according to a press release statement based on a recent SEC filing.
The joint venture, formed in December 2023, was established to provide electrification-as-a-service offerings using electric school buses. Blue Bird and Generate Capital each held a 50% stake in the venture, which aimed to deliver turnkey electrification solutions, including electric school buses, vehicle financing, charging infrastructure, and fleet management.
According to the filing, the joint venture was unable to generate business on a timeline that would meet the profitability expectations of both partners. The boards of Clean Bus Solutions and Blue Bird approved the termination and dissolution of the entity earlier this week, with Generate Capital’s approval formalized on Friday.
Blue Bird contributed a total of $1,678,934 in capital infusions to the joint venture during its operation. The company stated it does not expect the termination to have a material adverse effect on its future financial condition, results, or cash flows.
In connection with the original joint venture agreement, Blue Bird granted Generate Capital warrants to purchase 1,000,000 shares of Blue Bird common stock at an exercise price of $25.00 per share, exercisable over five years.
Separately, Blue Bird’s board approved the appointment of Jeff Sanfrey as an executive officer, serving as Chief Operating Officer. Mr. Sanfrey, age 53, has been with Blue Bird since 2007 in various engineering and operations roles. His new responsibilities include oversight of manufacturing, material planning, logistics, quality, and lean transformation.
Mr. Sanfrey’s compensation includes an annual base salary of $416,000, eligibility for incentive and long-term equity awards, and severance arrangements in the event of termination without cause. He is also subject to non-solicitation and non-competition covenants following his employment.
All information is based on a statement from the company’s SEC filing.
In other recent news, Blue Bird Corp has garnered attention with several analyst updates. DA Davidson has reiterated its Buy rating on Blue Bird, noting a 26% year-over-year decrease in September school bus orders but a 16% growth for the third quarter of 2025. Additionally, Freedom Capital Markets initiated coverage with a Buy rating and a $67 price target, highlighting Blue Bird’s focus on alternative-fuel and electric models. BTIG also raised its price target for Blue Bird to $65, citing effective management in revenue growth and cost control after a strong fiscal third-quarter 2025 earnings report.
Meanwhile, HF Foods Group Inc. announced the appointment of Jeffery Taylor to its Board of Directors. Taylor brings extensive finance leadership experience, having served as VP, Chief Financial Officer, and Chief Accounting Officer at Franklin Electric Co., Inc. These developments reflect ongoing strategic moves and market assessments for both companies.
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