A group of investors in Perris, Calif.-based National RV Holdings Inc. has offered to buy the struggling motorhome manufacturer for $92 million and take it private, according to a report in the Press-Enterprise, Riverside.
The coalition, comprised of National RV Holdings board member Robert B. Lee, Los Angeles investment house B. Riley & Co. and SACC Partners, owns 14.88% of the company’s stock. The investors made their offer to the National RV Holdings board through a newly formed entity, CC Acquisition Group Inc.
They proposed buying the rest the stock for $6.25 per share and assuming the company’s debt and other obligations, according to a statement Monday (Nov. 21) by CC Acquisition Group.
Shares of National RV closed Monday at $5.71, up 16 cents, or 2.88%. Based on this, the offer represents a premium of about 9.5%.
National RV Holdings is parent to Perris-based National RV Inc. and Country Coach Inc., Junction City, Ore.
“We get these types of offers from time to time,” said National RV Holdings President and CEO Brad Albrechtsen. “We evaluate them as a board and look at all of the options, including staying the course.”
He said Lee, who is the founder of Country Coach, will have to excuse himself from the deliberations.
The offer is unusual because it involves B. Riley, which follows National RV and issues opinions to investors, Albrechtsen said. B. Riley briefly suspended its research several weeks ago in order to take an ownership position, he added.
The Press Enterprise said neither Lee nor B. Riley owner Bryant Riley could be reached for comment.
“I personally think they are trying to steal it,” said William Gibson, an RV industry analyst for Nollenberger Capital Partners in San Francisco.
“At the price they are offering, they would be taking it over for half of what it is worth.”
Gibson, who does not own National RV stock, said he would not be surprised if the offer could trigger a higher bid from another buyer.
The RV market softened this year after setting a sales record in 2004. On Nov. 8, National RV reported a quarterly loss of $5.9 million, and its shares sunk to a 52-week low of $4.16.
On the same day, it said the New York Stock Exchange had threatened to remove the stock if the price does not improve.