The principals of Fleetwood Enterprises Inc. and the buyer for its motorhome division, American Industrial Partners (AIP), each commented this afternoon on the bankruptcy court’s approval on Wednesday (June 24) to sell the division to AIP.
The sale of Fleetwood’s motorhome assets to AIP for $53 million is subject to pre-closing conditions and post-closing adjustments, according to a news release. Fleetwood did not conduct an auction because no other qualified bids were received.
“Fleetwood’s motorhome brands are highly respected, and we are confident that this market will recover with the broader economy,” said Dino Cusumano, partner of AIP. “We look forward to continuing to manufacture Fleetwood motorhomes. Fleetwood’s dealers and customers should see no change in Fleetwood motorhomes’ commitment to high quality industry-leading product. We greatly value the relationships that Fleetwood has with its dealers, customers and suppliers and very much look forward to continuing and improving those relationships going forward.”
Elden L. Smith, Fleetwood president and CEO, stated that management, “is pleased to see that the Fleetwood name will be preserved in the RV market place with this sale to AIP. The Fleetwood motorhome group will benefit greatly from having ownership that is well capitalized, experienced, and committed to growth in the RV industry. We are now focused on making this a smooth transition for our dealers, Fleetwood motor home owners, and associates.”
The sale includes two motorhome manufacturing facilities, two motorhome service facilities, and Fleetwood’s Gold Shield supply subsidiary, all presently located in Decatur, Ind. It also includes the intellectual property for Fleetwood’s existing motorhome brands and certain machinery and equipment in Riverside, Calif. AIP may operate the Riverside facility for an undetermined period of time going forward. AIP has agreed to assume certain liabilities, including warranty obligations on Fleetwood motorized products.
The companies expect the deal to close within a matter of weeks.
Additional information about the company’s reorganization may be found online in the news section of www.fleetwood.com or at www.kccllc.net/fleetwood.
American Industrial Partners was founded in 1989 and is a leading U.S. based private equity firm that makes control equity investments, in partnership with management, in well positioned U.S. headquartered industrial companies with leading market shares that can benefit from the firm’s systematic approach to implementing strategic and operational improvements. It is investing its fourth fund which recently closed with $405.5 million of committed capital. For more information, visit www.aipartners.com or American Industrial Partners can be reached at (212) 627-2360.
Founded in 1950, Fleetwood Enterprises Inc. and its various subsidiaries produce, distribute and service recreational vehicles and manufactured housing.