New Zealand-based motorhome rentals operator Tourism Holdings Ltd. (THL) and Kea Manufacturing NZ announced they are forming a joint venture under which they will split out and merge their recreational vehicle and campervan manufacturing units into a stand-alone business – a move that will axe 63 jobs.
Stuff.co.nz reported that under the terms of the deal, the two tourism companies will sell their manufacturing facilities to RV Manufacturing Group LP (RVMG), which also includes the sale of THL’s specialist body business.
The deal, which is separate to their respective rentals and vehicle sales businesses, will see THL shed 63 jobs when it closes its motorhome assembly business in Hamilton, the company said.
Around $7.5 million worth of THL assets will be transferred, partly representing the company’s capital contribution to RVMG, with the remainder seen as an advance. The company said the sale is not expected to have a negative impact on pre-tax earnings.
RVMG’s main manufacturing facility will be based at Kea Manufacturing’s plant in Auckland, while the specialist and body work business will operate from THL’s Motek Specialist vehicles site in Hamilton.
The building owned by THL in Hamilton will remain with the company and is expected to be put up for sale shortly. The agreements are due to settle by March 1.