Catterton Partners, a consumer-focused private equity firm in North America, has sold a controlling stake in its portfolio company Heartland Recreational Vehicles, a manufacturer of towable recreational vehicles, to Thor Industries for a total consideration in excess of USD200m in cash and stock.
Since partnering with the Heartland founders in early 2007, Catterton has worked with the Heartland management team to enable the company to become the fourth largest manufacturer of towable recreational vehicles in the US, up from the 12th position at the time of its investment.
Over this period, Heartland has quadrupled its sales, earnings and market share by expanding its geographic reach, introducing new product lines and enhancing the overall customer experience.
Recently, with Catterton’s support, Heartland acquires Fleetwood Enterprises’ towable brand portfolio.
Under Thor’s ownership, Heartland will continue to operate under the Heartland name and will maintain its current brand portfolio. Heartland will remain headquartered in Elkhart, Indiana, and will continue to be led by the company’s current management team under chief executive Brian Brady.
"We are proud of the dramatic growth that Heartland has experienced, and we believe that the transaction with Thor will further accelerate Heartland’s growth," says Scott Dahnke, managing partner of Catterton Partners. "This transaction pairs Heartland with the most successful RV company in the world; we are confident that it will be a winning combination for Heartland dealers and consumers. Industry fundamentals remain strong, and with Thor’s breadth, scale and financial resources, Heartland can continue to offer its dealers and consumers the highest quality products for great value, while continuing its record of product innovation and outstanding service. We are excited to be Thor shareholders and look forward to the substantial upside inherent in the combined company."
"We are very excited about this transaction as it clearly benefits our dealers, our employees, our customers, and the entire Heartland family. Under Thor’s ownership, we will have access to increased financial and operational resources which will enable us to continue our strong momentum in the marketplace," adds Brady. "I want to thank our employees for their hard work and dedication to Heartland; their efforts have been a critical part of our success. We are pleased to bring Heartland’s creative energy and relentless commitment to excellence to the Thor family. The entire Heartland organisation looks forward with great anticipation to continuing to offer our dealers and consumers the same best-in-class products and innovations that they have come to expect from Heartland."
