RV PRO News is reporting that the sale of Valley Towing to an international parts supplier to the auto industry is imminent.
Quoting Larry Fisher, Valley’s vice president of sales and marketing, the business was identified as a diversified OE parts supplier with factories worldwide and more than $1 billion in annual sales. “It’s a substantial business partner that we’re taking on,” he said.
The announcement in part laid to rest uncertainty surround the Rochester Hills, Mich.-based hitch manufacturer.
“We are not going bankrupt; there has never been any discussion of that,” Fisher said, responding to rumors that have circulated regarding Valley’s financial health. In spite of some financial difficulties, Fisher said the company is ahead in sales for this year compared to the same period 2009.
Valley’s management team acquired the company from Thule in June 2009. Fisher said that in December it became evident to the towing manufacturer that it needed additional capital in order to sustain the growth it was experiencing. Because banks currently are restrictive on lending, Fisher said Valley sought out and found an “extremely strong financial partner.”
“This move for us is going to provide a real nice springboard for our future. And the company that is acquiring us is an automotive OE player that has an appetite for building a platform in the aftermarket,” added Fisher, noting that the company is not currently involved in the towing market segment.
A purchase agreement with the acquiring OE supplier is in place and Fisher says he expects the deal to close later this week or perhaps early next week.
Valley hitches and towing accessories can be purchased at leading automotive parts and retail stores including Napa Auto, O’Reilly Auto Parts and Carquest Auto Parts.
Valley Towing Systems has been a manufacturer of high-quality trailer hitches, towing accessories and electrical trailering products since 1947, covering a wide range of markets including automotive aftermarket, original equipment, RV, boating, agricultural and commercial.
For more information, visit the company online at www.vtowing.com or call (800) 344.3112.