WATERLOO REGION — It looks like the Roadtrek recreational vehicle brand will be rescued from receivership.
In a news release issued two months after former owner Erwin Hymer Group North America went into receivership, Rapido SAS — a French company that produces the Westfalia brand of RVs — has signed a deal to acquire the Roadtrek brand.
“We know that Roadtrek is a very well-known brand with a good market share,” said Westfalia chief executive Mike Reuer. “The synergies that are possible with Westfalia and Roadtrek, we thought we’d definitely see if we can get it going again and get this back on track.”
Reuer said it’s hard to say how long it will take to resume manufacturing as the company must still complete its due diligence on the deal, a process that could take several months.
The company intends to scale back production and occupy just one of the four manufacturing plants operated by Erwin Hymer Group, with plans to hire an estimated 100 employees once production resumes, then expand to as many as 200 within a year to 18 months. It is still in talks with the landlord, so Reuer did not want to disclose the location.
The CEO also said the company will honour all Roadtrek warranties for vehicles sold prior to the receivership, which was a concern among consumers, and that it expects to be able to produce 1,000 vehicles per year.
Roadtrek was founded in 1974 in Kitchener as Home & Park Vehicles. The business was acquired by Industrial Opportunity Partners in 2011. Five years later, Germany’s Erwin Hymer Group bought the company.
Jeff Hanemaayer, former owner of Roadtrek, still owns the original manufacturing site on Shirley Avenue in Kitchener that Erwin Hymer Group North America leased. Rapido was one of the prospective buyers he met last month as part of the sale process.
“I believe they will be very good for the Roadtrek brand,” he said in an email to The Record.
The future of the popular Roadtrek brand had been uncertain since Erwin Hymer Group North America closed and was placed in receivership in February. The closing put about 850 people out of work in Cambridge, Kitchener and Guelph.
About 35 employees were rehired to help with the receivership process and to keep the manufacturing facilities on standby so production could quickly resume if a buyer was found.
Reuer said one of their first priorities will be to mend bridges with many of the former suppliers that are now listed as creditors in the receivership process and are owed hundreds of millions of dollars.
“We need the key suppliers back … and willing and able to be future suppliers for Roadtrek,” he said. “We need to talk to everyone and ensure they feel comfortable with us and the situation.”
Financial details of the deal were not disclosed.
Binding letters of intent had to be submitted to Erwin Hymer’s receiver by April 3. Nine days later, Rapido and the receiver concluded discussions on the deal.
Last month, a judge approved the quick sale process requested by the receiver out of concern for how the negative “taint” surrounding the receivership could hurt the brand — a concern the new owner recognizes.
“Of course, there is some uncertainty, and that can’t be neglected, but it was a good brand in the past,” said Reuer. He’s confident consumers and dealers will stay with the brand.
Rapido‘s roots go back to a cabinet making business started in France by Constant Rousseau in 1948. Over time, the business evolved into a caravan and motorhome manufacturer. It has 12 brands of RVs.
The family-owned company has more than 1,500 employees in four countries.
Erwin Hymer Group North America ceased operations on Feb. 15 after months of speculation about its fate. Financial irregularities were discovered as U.S.-based Thor Industries was in the process of acquiring German parent company Erwin Hymer Group last year.
Thor went ahead with that acquisition, but excluded the North American operations from the deal. At the time, the company owed about $273 million to more than 900 creditors.
jjackson@therecord.com
Twitter: @JamesDEJ
Twitter: @JamesDEJ