Blue Bird to Acquire Full Ownership of Micro Bird, Expand Market Share

February 18, 2026

Blue Bird Corporation announced its pending acquisition of the remaining 50-percent equity interest in Micro Bird, a joint venture with Canadian bus manufacturer Girardin Minibus. The $198.2 million deal, which values Micro Bird at $429.6 million, is expected to close by the end of the second quarter, pending regulatory approval and customary closing conditions.

The Micro Bird brand originated in the mid-1970s, when Blue Bird introduced its first Type A school bus built on a cutaway van chassis. Blue Bird entered a supply agreement with Girardin Minibus in 1992 to build the Micro Bird in Quebec. The most recent joint venture between Blue Bird and Girardin was signed in 2009, which created Micro Bird, Inc.

The transaction announced Tuesday is funded through a combination of 70-percent stock and 30-percent cash. It includes the $16.5 million purchase of Micro Bird’s new manufacturing facility in Plattsburgh, New York and the transfer of its OEM service parts inventory for $400,000, according to a company presentation on the deal strategy and structure. Blue Bird said it plans to issue 2.7 million shares to fund the stock portion and use $154.2 million in cash for the remainder.

Blue Bird said the acquisition is expected to enhance the company’s market share in the K-12 student transportation industry by expanding its product portfolio to include a comprehensive lineup of Type A, C and D buses powered by diesel, gas, propane, and electric powertrains. The deal will also double Micro Bird’s addressable market in the U.S., thanks to its compliance with Buy America requirements, and strengthen Blue Bird’s presence in Canada.

The transaction is projected to be immediately accretive to earnings, with an estimated 8.2 percent increase in earnings per share in fiscal year 2026. Blue Bird’s pro forma revenue is expected to grow from $1.5 billion to $1.9 billion, while adjusted EBITDA is forecasted to increase from $225 million to $250 million. The company said it anticipates long-term revenue growth to reach $2.5 billion by 2030, with an EBITDA margin exceeding 15 percent.

Micro Bird, known for its high-quality school, commercial and electric buses, is well-positioned for long-term growth. Blue Bird said the acquisition will enable it to leverage Micro Bird’s expertise in electric vehicle technology, streamline development and expand into adjacent markets such as commercial and specialty vehicles as well as drive engineering efficiencies, enhance market share, and deliver value to shareholders through profitable growth and stock buybacks.

This article is developing.