French-based Rapido Group, owner of the Westfalia brand, announced that it signed a binding letter of intent to acquire substantially all of the assets related to the Roadtrek RV brand, an operating division of Erwin Hymer Group North America Inc. (EHGNA) which is in the midst of receivership proceedings.
According to a press release, on an application by Corner Flag LLC the Ontario Superior Court of Justice granted an order on Feb. 15, 2019 appointing Alvarez & Marsal Canada Inc. as receiver and manager without security of all of the assets, undertakings and properties of EHGNA. The receiver commenced a sale process and accepted qualified bids until April 3. Bids were accepted for all or any portion of the assets owned by EHGNA and preference was given to those bids that contemplated operating the business as a going concern.
On April 12, Rapido and the receiver concluded discussions concerning the letter of intent, recognizing the company as the winning bidder of Roadtrek. Pursuant to the letter of intent, Rapido has agreed to purchase substantially all of the assets of EHGNA relating to Roadtrek. Rapido has the intention of assuming the lease of one of the existing manufacturing and assembly facilities. Subject to ongoing due diligence and the execution of a definitive purchase agreement, Rapido plans to re-establish and reinvigorate the Roadtrek business.
Rapido's President Pierre Rousseau noted, "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." In doing so, Rapido expects to hire a workforce that could grow eventually to more than 200 employees.
The acquisition of Roadtrek signifies Rapido's return with Westfalia to the North American leisure vehicle market. North America is familiar territory, as Westfalia was a well-known brand in North America in the 1960s and 1970s.