Coachmen Finalizes Deal with Forest River
Coachmen Industries Inc. announced that it finalized the sale of nearly all of the assets from its RV business to Elkhart, Ind.-based Forest River Inc. on Dec. 26.
The sale had been overwhelmingly approved by the company’s shareholders the previous week.
“While the housing markets remain under intense pressure, Coachmen Industries Inc. has substantially strengthened the financial stability of our company with the completion of the sale of our RV group,” said Rick Lavers, CEO of Coachmen. “Our company is restructured as a systems-built housing company with a growing specialty vehicle business. Our headquarters will remain in Elkhart County.”
Coachmen reported that of the $42 million purchase price, $10 million will be put into an escrow fund to pay for warranty claims. Another $11 million will go to cover accounts payable and other outstanding debt. The sale will net Coachmen at least $21 million, which will help the company become financially sound.
Forest River, a subsidiary of Berkshire Hathaway Inc., has agreed to retain the majority of Coachmen’s RV work force.