> SUBSCRIBE FOR FREE! 

Towable RV and manufactured home builder Kit Manufacturing Co. announced today (May 21) that it hired an investment banking firm to help it consider “strategic alternatives” which could include a sale of the company or a merger.
Kit, a 47-year-old firm based in Long Beach, Calif., has hired SG Capital of Los Angeles, an investment bank that advises mid-size companies about mergers, acquisitions, divestitures and other issues.
Kit’s Senior Vice President and Treasurer Bruce Skinner said a sale or merger are among the possibilities and he added, “Maybe an investor will want to put some money into it? Anything’s possible, we’ll shake the trees and see what falls out.”
Skinner declined to say whether Kit is in need of a capital infusion.
In his statement issued today, Dan Pocapalia, Kit’s chairman and CEO, said Kit’s “rich history of innovation and success in producing quality RVs and manufacturer homes” is not being “adequately reflected in Kit’s share price.”
Pocapalia’s statement was issued during today’s stock market session. Kit’s shares gained 19 cents, or 6%, today in American Stock Exchange trading to close at $3.25 a share.
Kit, which operates factories in Caldwell, Idaho, had $47.7 million in sales revenue during its fiscal year 2001, which ended Oct. 31. Its sales were equally divided between towable RVs and manufactured homes during its fiscal 2001.
However, Kit lost $2.5 million during its fiscal year 2001 and it lost $473,000 during the three months ended Jan. 31, on sales of $11.8 million.
Pocapalia, age 85, owns 49.3% of Kit’s outstanding stock, or almost 506,000 shares, according to the company’s proxy statement filed last Feb. 19.
Kit’s RV brands include Road Ranger, Companion, Millennium and Extreme.