Jackim Woods & Co Publishes RV Manufacturing M&A Overview
Jackim Woods & Company published its RV Manufacturing M&A Overview-2017. The RV Manufacturing M&A Overview provides a look at the forces that are driving M&A activity in the recreational vehicle industry and some of the publicly announced transactions that have been completed in the sector in the last 18 months. Rich Jackim, Managing Partner at Jackim Woods & Company points out that “since most RV related companies are privately owned, many transactions go unannounced. In this white paper we’ve summarized the publicly announced transactions and whatever transaction specific information we could find.”
If you own an RV manufacturer, dealer or supplier and would like to explore your options, feel free to contact Rich Jackim for a free, confidential consultation at 224-513-5142 or at rjackim@jackimwoods.com.
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Novae Corp Acquires H&H Trailers
Novae Corp., headquartered in Markle, IN, has acquired the assets of the Clarinda trailer manufacturer, H&H Trailers. The financial terms of the acquisition were not disclosed. Under the agreement, H&H Trailer’s will continue to operate independently but as a part of the Novae group and will retain the H&H brand.
“The two companies and their brands are well respected in the trailer industry, and together bring a very diverse and valuable range of proven products and services to the dealer base,” said Mark Yde, director of business development for Novae. “The North American dealer networks are highly complementary, and the commitment to growth through innovation, quality and outstanding customer service is common in the cultures within these two organizations.”
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.”
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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.
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Camping World Acquires RV World of Georgia
Camping World Holdings announced its acquisition of RV World of Georgia and its continued expansion in the Georgia market with its “side-by-side” business strategy, which permits acquired businesses, though operated by Camping World, to maintain the legacy name. “RV World of Georgia is one of the most successful, well-known and respected dealerships in the state of Georgia,” according to Chairman and CEO of Camping World, Marcus Lemonis. “The acquisition of RV World of Georgia exemplifies our ‘side by side’ strategy and will fulfill each of our objectives — increased market share, growth of our database and an additional distribution point for our Good Sam products and services.”
Read MoreJackim Woods & Co Releases RV Dealer M&A Overview-2016-2017
Jackim Woods & Company, released the 2016-2017 RV Dealer M&A Overview. This represents the first in a series of white papers the firm plans to publish on different aspects of the recreational vehicle industry. According to Rich Jackim, the Managing Partner at Jackim Woods & Co., “The recreational vehicle industry is experiencing a tremendous resurgence after the 2008-2009 recession. Record sales and profitability over the last few years have attracted the attention of well capitalized strategic and financial buyers who are interested in RV dealers of all types and sizes.”
New Zealand RV Rental Firm Acquires El Monte RV
Tourism Holdings, a publicly traded New Zealand RV rental company, has agreed to pay $65.3 million for U.S. RV rental and sales business, El Monte RV to increase its presence in the U.S. market, the world’s largest RV market. The acquisition will make Tourism Holdings the second-largest RV rental operator in North America behind rival Cruise America without increasing overall fleet numbers. El Monte allows Tourism Holdings to develop a broad-based RV rental and sales business in the U.S., similar to its success in the New Zealand market, and its mix of international and domestic customers and older fleet is complementary to Tourism Holdings’ smaller and more premium Road Bear operation in the U.S.
“We are looking forward to combining fleet procurement, operating different rental brands and maximizing RV sales through both our traditional wholesale channels and the El Monte retail sites; a model we know,” said Tourism Holdings Chief Executive Grant Webster. “This is a much lower risk strategy than trying to grow to an equivalent market share from the Road Bear platform.”
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Campers Inn Acquires Tom Stinnett Derby City
Campers Inn RV acquired Tom Stinnett’s Derby City RV in Clarksville, IN, which serves the Louisville RV market. Tom Stinnett founded Derby City RV in 1978. Since then, it has grown into one of the premier RV dealerships in the Midwest, and it boasts the largest interior showroom in the United States. RV Business honored the dealership with a Top 50 award in 2014, and it has received numerous Top Dealer awards from a variety of manufacturers. Stinnett has also served as Chairman for the RVDA and RVAC, and he has been a member and Co-Chairman of GoRVing.
Tom Stinnett’s Derby City RV will become the 16th location acquired and operated by Campers Inn RV. The new location represents the company’s ambition to grow its dealerships beyond the East Coast, as well as expand the network of resources available to customers traveling the country.
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Private Equity Firms Continue to Consolidate RV Industy
Over the past 20 years or so, some of the biggest names in the RV industry – Heartland, the REV Group, Fleetwood, Monaco, Dometic, Roadtrek, Grand Design, Lazydays RV Center and Camping World, to name a few – have been acquired by private equity groups (PEGs) like Bain Capital, Alliance Holdings, American Industrial Partners, Catterton Partners, Kidd & Co., and Main Street Capital.
For the most part, these PE firms operate quietly and without a lot of press, but they can have had a profound impact upon an industry, buying a mid-size RV company as a “platform investment” and then growing that company organically and through a series of smaller add-on acquisitions. The PEG’s goal is to triple or quadruple the size of the platform investment over the next 5-6 years. This buy and build strategy often converts their portfolio companies into industry leaders and creates or saves thousands of jobs in the process.
Determining the magnitude of private equity investment in the RV industry is challenging because private equity deals are private and the terms are typically not reported. Also, unlike publicly traded companies, private equity groups are not required to share their financial statements. In fact, in many cases, PE groups prefer to operate behind the scenes and not to promote their ownership of RV companies.
Nonetheless, Jackim Woods & Co., a mergers and acquisitions firm that specializes in the RV sector, has developed a proprietary database of strategic buyers and private equity groups interested in the RV sector and has tracked more than 65 transactions involving private equity firms over the last 20 years.
It is interesting to note that private equity interest spans the breadth of the RV sector and includes RV manufacturers, RV suppliers, RV distributors and RV dealerships.
While private equity firms have been involved in the RV market for more than two decades, interest in the RV industry has picked up since 2012.
“I believe that the RV industry continues to be very fertile ground for private equity investment,” says Rich Jackim, founder and managing partner at Jackim Woods & Co.
Jackim, an investment banker who focuses on the RV industry and has worked as a mergers and acquisitions consultant since 1993, says the current market is “probably one of the strongest seller’s markets we’ve seen in the last 15 years. Private equity groups have around $250 billion in dry powder that they need to invest, so the larger your RV company, the more interest you’ll get from private equity firms.”
According to Jackim, private equity firms “have a lot of money in their pockets right now but relatively few good quality opportunities to look at so we are very fortunate to be able to present our clients with multiple offers from buyers.”
If you are interested in understanding what your RV business might be worth or exploring your options, please contact Rich Jackim at (224) 513-5142 or at rjackim@jackimwoods.com.
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