Monaco Coach Corp. announced today (Nov. 9) that it has reached a definitive agreement to acquire the Warsaw, Ind.-based R-Vision companies and affiliates in an all-cash transaction of approximately $60 million.
The Coburg, Ore.-based company said the acquisition is expected to add $200 million to $220 million in sales and increase earnings 13 to 16 cents per share in fiscal 2006. Closing is expected to occur later this month and is subject to customary conditions.
R-Vision affords Monaco a stronger presence in the mainstream towable arena, including the growing light-weight travel trailer market.
“There is virtually no overlap in the products offered by our two companies,” said Kay Toolson, Monaco chairman and CEO. “R-Vision is the industry leader in the light-weight towable segment, with valuable brands based on the successful Trail-Lite trade name.”
R-Vision is the industry’s sixth largest towables manufacturer, including travel trailer, hybrid and fifth-wheel lines, and also produces Class A and Class C motorhomes. Its Bison and Roadmaster affiliates make utility trailers and specialty trailers for transporting automobiles, race cars, motorcycles and horses.
Monaco said the acquisition will position the company as the fifth largest manufacturer of both travel trailers and fifth-wheels.
“There are multiple opportunities for purchasing and other synergies between the two companies,” said John Nepute, Monaco president. “The combined companies will now have an annual production rate of over 20,000 recreational vehicles.”
Monaco said R-Vision would operate “as a separate entity,” and current management would remain in place.
R-Vision was founded by industry veteran Bill Warrick in 1995, and in 1997, the current management team of Denny Bailey and Bill DeVos joined the company.
Monaco said Bailey will continue as president of R-Vision and Craig Swisher will remain as president of the Specialty Products Group. In addition, Bailey and Swisher will retain their entire management teams.