WINNIPEG New Flyer Industries Inc. is expanding its presence in the North American bus manufacturing and parts industry with the acquisition of NABI.

The Winnipeg-based company says it will pay $80 million cash to acquire North American Bus Industries, also known as NABI, from Cerberus Capital.

NABI has a bus manufacturing plant in Alabama, a parts distribution centre in Ohio and a service centre in California.

RELATED: New Flyer buys the Orion aftermarket parts business of Daimler bus for $29M

New Flyer will partially fund the deal with money raised through an investment by Marcopolo SA, which will hold about one-fifth of the companys common stock

New Flyer says the acquisition will give it a complementary product line, access to new customers and significant aftermarket parts organization.

It will operate the acquired business units as NABI Bus and NABI Parts.