DURA Automotive Systems Inc., parent of RV industry supplier Atwood Mobile Products, announced today (June 19) it plans to buy Elkhart, Ind.-based Creation Group from its parent, Heywood Williams Group PLC of the United Kingdom.
DURA, headquartered in Rochester Hills, Minn., has agreed to pay $57 million for Creation, subject to a working capital adjustment and an earn-out provision of an additional $3 million if Creation reaches certain financial targets. The firm supplies windows, doors and specialty products to the North American RV, motor vehicle accessories and manufactured housing markets.
“This acquisition will compliment our existing Atwood Mobile Products division by expanding our product offerings and bring on new customers,” said Larry Denton, DURA’s president and CEO. “Strategically, this is an important step for DURA, increasing our presence in the recreation and specialty vehicle markets with a widely recognized and respected supplier to the industry.”
Creation had $145 million in sales revenue in 2002 and its operating income totaled $9 million, according to DURA, a Nasdaq Stock Market-traded company. Excluding Creation’s $3 million in depreciation expenses incurred last year, its earnings before interest, taxes, depreciation and amortization (EBITA), amounted to $12 million.
Creation employs 1,100 people at 10 facilities in Indiana, Ohio and Pennsylvania.
Completion of the deal is subject to approval by Heywood Williams’ shareholders and government regulatory agencies.