Drew Industries Inc., parent of RV industry supplier firms Lippert and Kinro, has reached an agreement in principle to buy Chapter 11 Kevco Inc.’s Better Bath division for $10 million plus the assumption of certain contracts.
Better Bath makes thermo-formed bath and shower units for manufactured housing industry customers. It had about $27.7 million in sales during 2000.
The U.S. Bankruptcy Court in Fort Worth, Tex., has to approve the sale and the court might require an auction. If Better Bath ends up being sold to a higher bidder, then Drew would be owned a break-up fee.
If Drew eventually buys Better Bath, then Better Bath would be managed by Drew’s Kinro subsidiary.
Drew believes the sale will be finalized round May 31.