Done Deal: Navistar Completes Purchase of Monaco for $47M

[DriVer]

Navistar Affiliate Completes Purchase of Certain Monaco Coach Assets
New Company Will Be Named Monaco RV LLC



WARRENVILLE, Ill. -- Navistar International Corporation announced today that an affiliate has completed the purchase of certain assets of the recreational vehicle manufacturing business of Monaco Coach Corporation. The purchase price is approximately $47 million.

“Navistar’s entry into the RV business through the purchase of certain Monaco Coach assets fits our strategy of leveraging our assets to expand our diesel business, serve the end customer through robust parts and service, and will complement our Workhorse chassis business,” said Jack Allen, president of Navistar’s North American truck group. “The Monaco brand is a market leader with a strong reputation and Navistar is pleased to add it to our portfolio of leading brands and businesses.”

Monaco Coach Corporation, one of the nation’s leading recreational vehicle manufacturers, filed for Chapter 11 bankruptcy relief last March 5 in the District of Delaware. Headquartered in Coburg, Ore., the company had manufacturing facilities in Oregon and Indiana and its RV offerings ranged from entry-level priced towables to custom-made luxury models under the Monaco, Holiday Rambler, Safari, Beaver, McKenzie and R-Vision brand names.

The new company, named Monaco RV LLC, will be a wholly-owned affiliate of Navistar Inc., Navistar’s principal operating company, and headquartered in Coburg, Ore.

Purchasing the Monaco Coach Corporation assets out of bankruptcy allowed the assets, inventory and intellectual property to be purchased for a significant discount, while not assuming the liabilities of Monaco Coach. Facilities included in the purchase are located in Coburg, Ore.; Harrisburg, Ore.; Wakarusa, Ind., and; Milford, Ind.

Production at Monaco Coach Corporation was halted prior to the bankruptcy filing and Navistar said that Monaco RV will resume production at certain facilities in the coming months.

“Providing the RV market with the right vehicles at the right time will be Monaco RV’s first order of business,” added Allen. “Our management teams will spend these first few weeks ramping up the business at a pace commensurate with demand.”

Although the new company is not liable for any product sold by Monaco Coach Corporation prior to the purchase by Navistar, customer service representatives will be available to aid RV owners in providing service and support for their vehicles. Owners with questions should call 877.4MONACO for assistance.

Navistar announced on March 26 that it entered into a non-binding agreement to purchase certain Monaco Coach Corporation assets and would work through the bankruptcy court to purchase the assets. United States Bankruptcy Court for the District of Delaware, Bankruptcy Judge Kevin J. Carey approved a final Sale Order on May 22.

About Navistar
Navistar International Corporation (NYSE: NAV) is a holding company whose wholly owned subsidiaries produce International® brand commercial and military trucks, MaxxForce® brand diesel engines, IC Bus brand school and commercial buses, and Workhorse® brand chassis for motor homes and step vans. It also is a private-label designer and manufacturer of diesel engines for the pickup truck, van and SUV markets. The company also provides truck and diesel engine parts and service. Another affiliate offers financing services. Additional information is available at www.Navistar.com/newsroom.


Source: NAVISTAR Press Release

[mythplaced]

Quote:

Originally Posted by DriVer Navistar Affiliate Completes Purchase of Certain Monaco Coach Assets New Company Will Be Named Monaco RV LLC ............. RV offerings ranged from entry-level priced towables to custom-made luxury models under the Monaco, Holiday Rambler, Safari, Beaver, McKenzie and R-Vision brand names. .......Purchasing the Monaco Coach Corporation assets out of bankruptcy allowed the assets, inventory and intellectual property to be purchased for a significant discount, while not assuming the liabilities of Monaco Coach. .......Although the new company is not liable for any product sold by Monaco Coach Corporation prior to the purchase by Navistar, customer service representatives will be available to aid RV owners in providing service and support for their vehicles. Owners with questions should call 877.4MONACO for assistance. .......... Source: NAVISTAR Press Release

Yep, they will sell you parts, but not honor warranties...

WHile I am not a MONACO owner....I am the owner of an orphan....

I KNew I needed to buy that service contract, and glad I did....

I believe NAVISTAR should offer to 50/50 with purchasers who bought new and lost their warranty, that's the least they could do to maintain brand loyalty...

[Dick & Pat]

Quote:

Originally Posted by mythplaced I believe NAVISTAR should offer to 50/50 with purchasers who bought new and lost their warranty, that's the least they could do to maintain brand loyalty...

If they don't, it'll be their first BIG mistake

[Jim Stewart]

No, not quite, their last!

[DocUSAF]

Wow, what a mess....for many of us who did buy Monaco RV's brand new, and took the extended warranty as suggested....what a mess.....so now we wait to see what will the new owner really do....my guess is, leave previous Monaco owners and their RV investment in the cold, warranty's and all....but loyality cuts both ways....previous owners were the market....lock, stock and barrel....so now we wait and see.....DocUSAF

[Timturbo]

Does this mean the Roadmaster warranty is no longer valid as well?

[EngineerMike]

I believe Roadmaster was put into Chapter 7 liquidation, and it may have been picked up by some version of Navistar as well. This would follow the Monaco logic that Roadmaster warranties are kaput also.

[Jackm]

Economic woes or not, an industry-wide shakeout was inevitable. At one time, there were over 125 American auto companies. In the end, systematic consolidations and competition from abroad decimated the industry.

From an economy-of-scale perspective, there were simply too many companies manufacturing essentially the same product. 2009 will be remembered as the starting bell for a whole new game. Look for levels of innovation and creativity never seen before (i.e. Winnebago's hybrid). The good news is, when things settle out, RV buyers will finally be able to purchase unique, well-made, fuel-efficient products from an industry that was forced to become more competitive. The bad new...lots of orphaned models and a likely across-the-board price increase for motorized RVs due to environmental compliance costs and a slow shift towards the diesel-enabled chassis.

Last but not least, this shake-up will ultimately prepare this very American industry to deal with competition from other nations. As RVs get smaller and more fuel-efficient, they move closer and closer to the types of products that are typically manufactured overseas. One thing is for sure, my 35 foot motorhome with its gigantic gasoline engine will seem like a dinosaur twenty years from now. The good news? The dinosaur will finally be paid for.

Jack

[Nonno]

Quote:

Originally Posted by DocUSAF Wow, what a mess....for many of us who did buy Monaco RV's brand new, and took the extended warranty as suggested....what a mess.....so now we wait to see what will the new owner really do....my guess is, leave previous Monaco owners and their RV investment in the cold, warranty's and all....but loyality cuts both ways....previous owners were the market....lock, stock and barrel....so now we wait and see.....DocUSAF

It's true that the new owner warranty is gone. However, if you did purchase Monaco's "extended " warranty that should still be good. Look at your agreement it should reflect that it's administered by a third party (Prizm) and backed by an insurance company (Lyndon). Similar to other manufacturers, Monaco just marketed it with their name on it. I'd give Prizm a call (800-726-5045) to verify this.

[DriVer]

Quote:

Originally Posted by Nonno From Bob Russo

Bob, I guess we're kind of in the same family again or at least "In-Laws".

[mythplaced]

Y'know, I just did the math.....

Navistar bought Monaco for the cost of 188 40 ft DP's....

Hmmm lesee then that means I could buy Hummer for $6.5 M
or
Saturn for $4.2M

I think they got a bargain....

[Jim Stewart]

Mike you need to recalulate your post, they wrote up the inventory by $33 Million when they booked the deal, so the net price was only $14 Million.

[thomask]

Has anyone received any? assistance with a pre bankruptcy issue from Navistar.

[Jim Stewart]

To my knowledge, no!