by Jason Epperson
France-based Rapido Group announced today that it was selected as the winning bidder for most of the assets of Roadtrek motorhomes, and has signed a binding letter of intent to enter a purchase agreement as a part of the Canadian receivership process.
Roadtrek owner Erwin Hymer Group North America (EHGNA) abruptly closed earlier this year after it was carved out of a deal to sell parent company Erwin Hymer Group to Thor Industries. Financial “irregularities” found during an audit near the end of the sale triggered a speedy renegotiation of the sale, leaving the Canadian subsidiary that primarily manufactured Roadtreks $300 million in debt and without a parent.
Erwin Hymer acquired Roadtrek in
After the company closed, bids were accepted for all or any portion of the assets owned by EHGNA, and some two dozen companies signed confidentiality agreements allowing them to take a closer look at the assets.
Rapido’s bid was selected as the winner in part because the company plans to assume the lease and restart operations at one of the two Kitchener, Ontario-area factories. Rapido is a small motorhome
Rapido’s President, Pierre Rousseau, commented that “Roadtrek is a well established leading brand in the B Class segment of the RV market. Our priority will be to re-establish operations and further develop this famous brand in North America.” Rapido expects to hire a workforce that “could grow eventually” to more than 200
The sale is still subject to “ongoing due diligence” and the execution of a definitive purchase agreement. Of course, it was due diligence by Thor that brought EHGNA’s problems to light in the first place, so there may still be hurdles to jump. But it appears at the moment that Roadtrek may be back soon, perhaps as a bit smaller company.
On the minds of many Roadtrek owners will be whether the company’s 6-year warranty will once again be honored on previously sold vehicles. Rousseau told therecord.com that he intends to honor warranties for vehicles that were purchased prior to the receivership, but it could take months for the sale to complete.