The atmosphere was bittersweet at Coachmen Industries in Middlebury Friday morning as shareholders approved a $42 million sale of the company’s recreational vehicle group to rival RV manufacturer Forest River.
According to Richard Lavers, president and CEO of Coachmen Industries, more than 99 percent of company shareholders voted in favor of the deal, which essentially transfers the company’s RV business and a large majority of the RV group’s employees to Forest River.
“Today is bittersweet for many of us,” Lavers said when addressing shareholders Friday. “It was never our intention to be selling the company this year.”
That said, Lavers reminded those assembled at the meeting that even with the RV Group’s consistent attempts at reducing costs and product restructuring over the past 18 months, the daunting combination of soaring gasoline prices, dropping consumer confidence and a far-reaching credit crisis have resulted in a significant and sustained loss of revenue for the company.
“So under these circumstances,” Lavers said, “this is the right thing to do.”
Through the deal, Lavers indicated that Forest River will acquire all of the real estate, fixed assets and equipment used in Coachmen’s traditional RV business at its Middlebury manufacturing complex, as well as its Viking manufacturing facility in Centerville, Mich., and its Michiana Easy Livin’ Country RV dealership in Elkhart.
Forest River will also acquire all of the RV group’s finished goods, works in progress, and raw material inventory, however Lavers noted that Coachmen’s headquarters will remain in Elkhart County.
As for employees of the RV group, Lavers indicated that Forest River will offer employment to nearly all of the group’s sales staff and production workers, as well as many members of management.
That said, Lavers did note that approximately 125 employees will lose their jobs as a result of Friday’s sale.
“Roughly 125 people will have no immediate home,” Lavers said, noting that his thoughts and those of the company will be with them as they search for new employment opportunities. “We hope that they find work quickly.”
Breaking News
The deal is done - Coachmen RV sold to Forest River
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