RV manufacturer Forest River Inc. has purchased the shuttle bus and handicapped accessible vehicles business of Starcraft Corp. for $8.3 million in cash plus a possible additional $500,000, depending on future earnings, the two companies announced.
The acquisition of Starcraft’s bus and mobility business adds to Forest River’s portfolio, which already included towable RVs, motorhomes, park models, office trailers, cargo trailers, pontoon and bass boats.
The closely-held Forest River’s annual sales total around $600 million, while Starcraft’s bus and mobility business had $10 million in sales along with operating earnings totaling $237,000 during the April-through-June period.
“We are excited about the potential this new business brings to us,” said Pete Liegl, founder, president and CEO of Forest River. “The operating synergies with our existing business make this acquisition a logical move for us as we expand our company.”
Starcraft President and COO Mike Schoeffler will join Forest River to manage the bus and mobility business and he will remain a member of the Starcraft Board of Directors.
Forest River also bought Starcraft’s shuttle buses and handicapped accessible vehicle assembly plant in Goshen Ind., Liegl said. The Goshen property will continue being used to build buses and handicapped accessible vehicles and it has excess capacity that will be used by other Forest River businesses, Liegl added.
Starcraft, which divested its van conversion business earlier this year, retains its Tecstar LLC auto industry supplier business.
Starcraft Corp. is not affiliated with Starcraft RV Inc. or the Starcraft pleasure boat building business, both of which are located in Topeka, Ind.