THE DIVESTMENT CAMPAIGN
Our Client – The Vendor
Northern RV is an established supplier of products and services to Australia’s recreational vehicle (“RV”) sector. Operating for +10 years and employing +70 staff, the firm has developed three interrelated service offerings. Its core business is the provision of highly specialised Plumbing & Electrical Contract Labour Solutions to RV manufacturers. A separate Service Workshop provides warranty support as well as aftermarket maintenance, repairs, upgrades & import compliance to both trade and end-user customers. Finally the Business has become a leading national RV Parts & Equipment Distributor, acting as a wholesale supplier to manufacturers & registered trades and as a retailer through its workshop and online sales channels.
In 2017, having built the Business from a sole tradership to a market leading service provider, NRV’s owner engaged Johnsons to assist in finding a strategic suitor with the capabilities to continue scaling the business in a high-growth industry environment. For Johnsons, formulating a sale strategy presented a interesting challenge, given NRV’s diversified offering and its servicing of multiple disparate market segments. Successfully selling the Business – without breaking it up into its constituent divisions – would hinge on identifying a strategic acquirer with the scale and synergies to leverage NRV’s unique business model.
The Business Sales Strategy
With its track record for high growth and strong margins, Johnsons was confident that NRV Group would represent an attractive opportunity to potential acquirers. Furthermore, a number of factors underpinned strong future growth projections, not the least of which were NRV’s strong positioning in the fast-growing RV sector as well as its a long-standing customer-base and strong supplier relationships.
Johnsons Corporate’s custom research & marketing focused on Australian RV Services Providers as a primary target segment. Secondary or related segments included Electrical & Plumbing Contractors, Labour Hire Firms, Parts & Equipment Distributors, and RV & Mobile Home Manufacturers as well as a shortlist of prospective private equity & financial buyers. Johnsons ran a proactive direct marketing campaign that uncovered 12 qualified, interested parties. Further vetting and negotiations resulted in the selection of a preferred buyer and backup buyer, with Offer and Acceptance secured within 12 weeks of going to market.
(Read more about how using a Specialised Mid-Market Business Broker Approach to selling your business could get you a better outcome – just like our client).
The ASX-Listed Trade Buyer
Fleetwood Corporation Limited (ASX:FWD) is a provider of innovative accommodation solutions as well as recreational vehicles, parts and accessories. With 8 manufacturing sites across Australia and over 250,000m2 of manufacturing capacity, Fleetwood’s acquisition of NRV enabled the company to broaden its exposure to OEM’s within the Caravan and RV sector.