- Created: Thursday, 26 March 2009 05:00
Monaco filed for Chapter 11 bankruptcy protection on March 5.
Navistar, with nearly $15 billion in annual sales, is a leading global manufacturer of commercial vehicles, military vehicles, diesel engines and related parts and services.
The letter of intent contemplates that Monaco and Navistar will work to sign a definitive asset purchase agreement during early April. Following the completion of due diligence and the bankruptcy court approval process, including the auction process, the parties intend to close the transaction shortly after obtaining the entry of a final non-appealable sale order of the bankruptcy court pursuant to Section 363 of Title 11, authorizing the transfer of purchased assets to Navistar.
Monaco continues to work with other interested parties regarding the acquisition of its motorhome Resorts segment and other assets held for sale.
"We look forward to working with Navistar to complete this transaction and ultimately become a part of one of the nation's most respected companies, said Kay Toolson, Monaco chairman and CEO. "This is a great opportunity for our employees, dealers, suppliers and the communities in which we operate. We look forward to continuing the Monaco Coach brands and our legacy of producing quality and innovative recreational vehicles for our owners."
Monaco, based in Coburg, Ore., has manufacturing facilities in Oregon and Indiana. The company offers a variety of RVs, including motorhomes under the Monaco, Holiday Rambler, Safari, Beaver, McKenzie and R-Vision brand names.
Navistar produces International brand commercial vehicles, MaxxForce diesel engines, IC Bus school buses, and Workhorse chassis for motorhomes.
“If we are able to reach agreement, the purchase of certain Monaco assets would fit our strategy of leveraging our assets to expand our diesel business, serve the end customer and would also complement our Workhorse custom chassis business,” said Jack Allen, president of Navistar’s North American truck group. “Any asset purchase would fall within our current capital expenditure program for fiscal 2009.”