December 2016

New Zealand RV Rental Firm Acquires El Monte RV

Tourism Holdings, a publicly traded New Zealand RV rental company, has agreed to pay $65.3 million for U.S. RV rental and sales business, El Monte RV to increase its presence in the U.S. market, the world’s largest RV market.  The acquisition will make Tourism Holdings the second-largest RV rental operator in North America behind rival Cruise America without increasing overall fleet numbers.  El Monte allows Tourism Holdings to develop a broad-based RV rental and sales business in the U.S., similar to its success in the New Zealand market, and its mix of international and domestic customers and older fleet is complementary to Tourism Holdings’ smaller and more premium Road Bear operation in the U.S.

“We are looking forward to combining fleet procurement, operating different rental brands and maximizing RV sales through both our traditional wholesale channels and the El Monte retail sites; a model we know,” said Tourism Holdings Chief Executive Grant Webster. “This is a much lower risk strategy than trying to grow to an equivalent market share from the Road Bear platform.”

Read more: https://www.scoop.co.nz/stories/BU1612/S00823/tourism-holdings-to-buy-el-monte-us-campervan-business.htm

Campers Inn Acquires Tom Stinnett Derby City

Campers Inn RV acquired Tom Stinnett’s Derby City RV in Clarksville, IN, which serves the Louisville RV market.   Tom Stinnett founded Derby City RV in 1978. Since then, it has grown into one of the premier RV dealerships in the Midwest, and it boasts the largest interior showroom in the United States. RV Business honored the dealership with a Top 50 award in 2014, and it has received numerous Top Dealer awards from a variety of manufacturers. Stinnett has also served as Chairman for the RVDA and RVAC, and he has been a member and Co-Chairman of GoRVing.

Tom Stinnett’s Derby City RV will become the 16th location acquired and operated by Campers Inn RV. The new location represents the company’s ambition to grow its dealerships beyond the East Coast, as well as expand the network of resources available to customers traveling the country.

Private Equity Firms Continue to Consolidate RV Industy

Over the past 20 years or so, some of the biggest names in the RV industry – Heartland, the REV Group, Fleetwood, Monaco, Dometic, Roadtrek, Grand Design, Lazydays RV Center and Camping World, to name a few – have been acquired by private equity groups (PEGs) like Bain Capital, Alliance Holdings, American Industrial Partners, Catterton Partners, Kidd & Co., and Main Street Capital.

For the most part, these PE firms operate quietly and without a lot of press, but they can have had a profound impact upon an industry, buying a mid-size RV company as a “platform investment” and then growing that company organically and through a series of smaller add-on acquisitions. The PEG’s goal is to triple or quadruple the size of the platform investment over the next 5-6 years.  This buy and build strategy often converts their portfolio companies into industry leaders and creates or saves thousands of jobs in the process.

Determining the magnitude of private equity investment in the RV industry is challenging because private equity deals are private and the terms are typically not reported.  Also, unlike publicly traded companies, private equity groups are not required to share their financial statements. In fact, in many cases, PE groups prefer to operate behind the scenes and not to promote their ownership of RV companies.

Nonetheless, Jackim Woods & Co., a mergers and acquisitions firm that specializes in the RV sector, has developed a proprietary database of strategic buyers and private equity groups interested in the RV sector and has tracked more than 65 transactions involving private equity firms over the last 20 years.

It is interesting to note that private equity interest spans the breadth of the RV sector  and includes RV manufacturers, RV suppliers, RV distributors and RV dealerships.

While private equity firms have been involved in the RV market for more than two decades, interest in the RV industry has picked up since 2012.

“I believe that the RV industry continues to be very fertile ground for private equity investment,” says Rich Jackim, founder and managing partner at Jackim Woods & Co.

Jackim, an investment banker who focuses on the RV industry and has worked as a mergers and acquisitions consultant since 1993, says the current market is “probably one of the strongest seller’s markets we’ve seen in the last 15 years. Private equity groups have around $250 billion in dry powder that they need to invest, so the larger your RV company, the more interest you’ll get from private equity firms.”

According to Jackim, private equity firms “have a lot of money in their pockets right now but relatively few good quality opportunities to look at  so we are very fortunate to be able to present our clients with multiple offers from buyers.”

If you are interested in understanding what your RV business might be worth or exploring your options, please contact Rich Jackim at (224) 513-5142 or at rjackim@jackimwoods.com.

Nationally Accredited, Title IV, Allied Healthcare School – SOLD

THIS OPPORTUNITY IS NO LONGER AVAILABLE.  CALL US TO LEARN ABOUT OTHER NURSING SCHOOLS WE HAVE FOR SALE

2016 Revenues (Est.): $2,400,000         2016 EBITDA (Est.): $343,000
line break

Investment Highlights:

Established Healthcare & Skilled Trades Programs – Medical Assistant–10 months, Licensed Practical Nurse (LPN)–12-14 months, Certified Nursing Assistant (CNA)–3 months, and HVAC Repair (HVAC)–12 months.

Major Metropolitan Market – The school has two campuses in a major metropolitan area in the Midwest.

High Placement Rates – 73% placement rate for its LPN program in 2015.

Fully Accredited, Title IV Institution – Currently accredited by ACICS and participates in Title IV program. Changing accrediting agencies to ACEN.

Excellent 90/10 Rate – The School’s 2015 90/10 rate was 60%.

Background:

Our client is a nationally accredited, Title IV allied healthcare career school established in 1997. The school offers allied healthcare and skilled trades programs. In 2016 the school has a total enrollment of over 300 students who attend the school’s two campuses located in a major metropolitan market in the Midwest. The school’s largest program is its licensed practical nurse (LPN) program with approximately 192 students which represents approximately 64% of school’s total tuition received.

Based on internal financial results through May 2016, management expects 2016 annualized revenues to be approximately $2.4 million and adjusted EBITDA to be $343,000. This is up 15% and 78% respectively from 2015.

The school is accredited by ACICS however management is in the process of changing accreditation to ACEN which they anticipate will be received before the sale is complete. The school’s founders have some minor health issues and are interested in retiring, however, they are willing and able to work with the buyer for a reasonable transition period or as consultants afterward.

Additional information is available to qualified principals upon receipt of a signed nondisclosure agreement attached. Download Client Profile and Nondisclosure Agreement.

Please contact Richard Jackim at (224) 513-5142 or rjackim@jackimwoods.com with any questions.