Author: Rich

Camping World Acquires Reines RV Center

Camping World Holdings continued its expansion in the state of Virginia with the acquisition of Reines RV Center, with locations in both northern and central Virginia.  Camping World currently operates SuperCenters in the Roanoke, Winchester, and Richmond, VA areas.  The Reines RV Center acquisition further expands the market footprint, increasing Camping World’s current presence in the state of Virginia to six SuperCenter locations.  “Over the past 70 years, the Reines family and staff have been honored with many awards for sales and consumer excellence and we look forward to continuing their high standards of quality and service,” said Brent Moody, COO of Camping World. “This important acquisition reinforces our commitment to further expansion in the state of Virginia and our focus on increased market share with our country-wide expansion.”

LCI Industries acquired RV Seating Maker Lexington, LLC

LCI Industries (often referred to as Lippert Components) acquired Lexington, LLC, a manufacturer of high quality seating solutions for the recreational vehicle, marine, transportation, medical and office furniture industries. Lexington’s revenues for the twelve months ending December 2017 are anticipated to be approximately $60 million. Details of the transaction were not disclosed.

KV Private Equity Acquires Northern Lite

KV Private Equity, based in Edmonton, Alberta, announced that it has acquired Northern Lite as it’s first investment.  Located in Kelowna, British Columbia, Northern Lite manufactures high-end fiberglass truck campers, which are distributed throughout Canada and the U.S. via a well-established dealer network.  Northern Lite is recognized for high standards of quality and workmanship, and the lightweight design of its products. “We are excited to have the opportunity to continue building this exceptional business. It is an honor that Mac Donkin (Northern Lite’s former owner) will continue with us as a director, and that his son Keith has agreed to join us as a shareholder, while also staying on as the general manager of Northern Lite,” said Jonathan Herman, COO of KV Private Equity.  Mac Donkin stated, “Northern Lite has been very successful over the last 27 years, I know that the best days are in front of it and that the company is in great hands with Keith and KV.”

Camping World Acquires Nelson Family RV Business

Nelson’s RV of Boise, Idaho, has announced that it was acquired by Camping World, the nation’s largest network of RV retail locations, after more than 33 years of serving Treasure Valley customers.  Nelson’s RVs was founded in 1983 by Byron and Donna Nelson, Wilma and Roy Petersen, and Karen and Tom Nelson. Since then the company has sold approximately 27,000 trailers, campers and motorhomes. Many of those sales were to repeat customers who kept coming back for the special care that was Nelson’s specialty.  This attention to customer service helped make Nelson’s RV one of Idaho’s largest-volume dealers.

The sale, which was finalized on April 6, includes three Nelson’s locations – two in Boise at 4911 and 5309 Chinden Blvd., and one at 5500 E. Cleveland Blvd. in Caldwell. The transaction includes inventory of nearly 500 RVs; two fully-equipped, state-of-the-art service departments; two newly expanded parts departments; and a full truck, hitch and accessory shop. The terms of the transaction were not announced.

The acquisition increases Camping World’s presence in Idaho to five locations, including two supercenters in the Meridian and Idaho Falls areas. Camping World will continue to operate the two Boise locations as Nelson’s RVs, while rebranding the Caldwell location as a Camping World RV SuperCenter.  Marcus Lemonis, chairman and CEO of Camping World, said the Nelsons and their team “have served Idaho and Eastern Oregon with premier recreational vehicle services for over 33 years. We look forward to continuing their high standards of quality and service and solidifying our leading position in the state of Idaho.”

Consolidation Accelerates in the Window and Door Industry

Manufacturers of window and door products are seeing an active mergers and acquisitions market as the pace of consolidation continues. Private equity groups are competing against strategic industry buyers to close deals and build market share.

Several large window and door manufacturers have been acquired over the last 18 months. PGT acquired WinDoor in February 2016 for an estimated ’s $102 million acquisition.  The deal is expected to strengthen PGT’s position in the impact-resistant window and door market in Florida. WinDoor has grown 20 to 25 percent over the past two years. PGT followed in October 2016 with the acquisition of US Impact Systems for an estimated $2 million, to gain a foothold in the commercial market.

In August 2016, Headwaters acquired Krestmark Industries for approximately $240 million, according to some estimates. This strategic acquisition provides Krestmark an entry to the Texas residential market and will extend Headwaters’ residential exterior building products portfolio.

In November 2016, Boral Industries, an Australian window and door manufacturer, acquired Headwaters to increase its share of the U.S. building and construction markets. The acquisition will double the size of Boral’s U.S. business.

Window and door manufacturer, Jeld-Wen has been highly acquisitive, closing two acquisitions in 2016 and six since 2015 to aggressively grow its door and window product portfolio.  Acquisitions include Trend Windows and Doors, Dooria, LaCantina Doors, Karona, and Aneeta Window Systems. Jeld-Wen raised $575 million in an IPO in January 2017, pricing 25 million shares at $23 per share—the high end of the offering range. As a result, the company has lots of capital to continue its aggressive acquisition strategy.  Jeld-Wen has been backed by private equity group, Onex Partners since 2011.

Window and door giants, Marvin, Pella and Masonite have also been active industry buyers, each announcing acquisitions in 2016. Marvin acquired Denver-based TruStile Doors LLC in May. This came after Pella Corp acquired Grabill Inc., a manufacturer of custom luxury windows and doors. Masonite also made several acquisitions, including its purchase of Performance Doorset Solutions, a manufacturer of custom doors and millwork in the United Kingdom, and USA Wood Door, a wholesaler and fabricator of architectural and commercial wood doors in the United States.

The window and door industry has seen an increase in private equity interest as the building market recovers.  A number of new platform and add-on acquisitions have been announced in 2016 including Ridgemont Equity Partners’ acquisition of Delta Door and Hardware, Paradigm Windows Solutions acquisition by CapitalWorks, the Cascade Windows acquisition by Center Oak Partners, the acquisition of Quantum Windows & Doors by Capital Partners, Inc., and the acquisition of Western Window Systems by Capitala Group. Private equity groups have raised over $150 billion in capital that they need to invest over the next 3 years which is expected to continue to drive activity.

The pace of acquisitions suggests that 2017 and 2018 will be a seller’s market for window and door manufacturers, fueled by surplus investment capital, debt capital and low-interest rates. In addition, limited organic growth opportunities are continuing to drive strategic acquisitions, as buyers look to broaden product portfolios, increase market share and diversify into growing markets.

For additional information about acquisition opportunities in the residential or commercial window and door sector please contact Rich Jackim at (224) 513-5142 or at rjackim@jackimwoods.com.

Novae Corp Acquires H&H Trailers

Camping World to Acquire Oklahoma’s Jamatt

Camping World Holdings announced that it has acquired Jamatt RV in Poteau, Okla. Camping World currently operates two SuperCenters in Oklahoma City and Tulsa, and the acquisition of Jamatt RV will expand their presence in eastern Oklahoma.

According to Camping World Chairman and CEO, Marcus Lemonis, “Jason and Sandy Blake (owners of Jamatt RV) have built a strong business with an incredible employee base and with this acquisition, Camping World continues to solidify its position as the leader in RV and outdoor accessory sales in the United States.”

Fun Town Acquires Happy Trails

Fun Town RV has acquired Happy Trails RV in Rockwall, Texas.  Rockwall is a suburb on the northeastern side of Dallas.  Fun Town expects to spend $1.5 million to renovate and expand the existing facilities, and to retain a majority of Happy Trail’s staff.  The renovations should be completed by March.

“The new location …is a two or two-and-a-half hour drive from our flagship store in Cleburne.  We feel like with our low prices and large selection of brands, we will make a big impact in this area,” stated Fun Town RV CEO Jarrod McGhee. Fun Town RV has 8 additional locations in Cleburne, Houston, Waco, San Angelo, Giddings, Denton, and Purcell, Oklahoma.