Menomonee Falls-based Actuant Corp. has sold its recreational vehicle business to a subsidiary of Elkhart, Ind.-based RV supplier Drew Industries for $35.5 million.
The $1.3 billion global diversified industrial firm’s RV business was within its Engineered Solutions segment. It manufactures motorhome leveling and slide-out systems and retractable steps. The products are sold mainly under the PowerGear and Kwikee brands.
Actuant’s RV business had annual revenues of about $30 million. Actuant expects to report a net gain on the divestiture.
“We are pleased to have completed the divestiture of the RV business to a strategic buyer whose complementary product offerings provide a clear fit for the business,” said Mark Goldstein, chief executive officer of Actuant. “The sale is part of our ongoing portfolio management efforts to proactively focus Actuant on our four macro growth markets of Energy, Infrastructure, Food/Farm Productivity and Natural Resources/Sustainability, where we can build meaningful positions and support our strategic growth initiatives.”
Drew Industries, which acquired the Actuant division through its Lippert Components Inc. subsidiary, funded the acquisition through available cash and borrowings under its $75 million line of credit. The company manufactures recreational vehicles and manufactured homes at 34 factories across the country.
“We are thrilled to have the Power Gear and Kwikee business and its employees join the Lippert Components family,” said Jason Lippert, chief executive officer of Drew. “The RV industry has been growing over the past few years, which has increased the necessity for talented people in engineering, sales, manufacturing and customer service. This talented team will be a strong addition to our existing team, and will help us continue to grow as we move forward.
“In addition, PowerGear and Kwikee have excellent products, strong customer relationships, and a portfolio of over 80 patents and patent applications,” he said. “The addition of these patents to our portfolio expands our product development potential, which we believe will lead to better overall products for the RV industry. We expect to leverage our extensive manufacturing, purchasing, distribution and administrative capabilities to improve the profitability of this business, and we expect this acquisition to be immediately accretive to Drew’s earnings.”