Navistar International Corporation announced June 4 that an affiliate has completed the purchase of certain assets of the Monaco Coach Corporation. Purchase price: approximately $47 million.
The new company, named Monaco RV LLC, will be a wholly-owned affiliate of Navistar Inc., Navistar’s principal operating company, and headquartered in Coburg, Ore.
Although the new company is not liable for any product sold by Monaco Coach Corporation prior to the purchase by Navistar, customer service representatives will be available to aid RV owners in providing service and support for their vehicles. Owners with questions should call 877-4MONACO for assistance.
“Navistar’s entry into the RV business through the purchase of certain Monaco Coach assets fits our strategy of leveraging our assets to expand our diesel business, serve the end customer through robust parts and service, and will complement our Workhorse chassis business,” said Jack Allen, president of Navistar’s North American truck group.
Monaco, based in Coburg, Ore., filed for Chapter 11 bankruptcy relief March 5 in the District of Delaware. The company had manufacturing facilities in Oregon and Indiana and its RV offerings ranged from entry-level priced towables to custom-made luxury models under the Monaco, Holiday Rambler, Safari, Beaver, McKenzie and R-Vision brand names.
Purchasing the Monaco Coach Corporation assets out of bankruptcy allowed the assets, inventory and intellectual property to be purchased for a significant discount, while not assuming the liabilities of Monaco Coach. Facilities included in the purchase are located in Coburg, Ore.; Harrisburg, Ore.; Wakarusa, Ind., and; Milford, Ind.
Production at Monaco Coach Corporation was halted prior to the bankruptcy filing and Navistar said that Monaco RV will resume production at certain facilities in the coming months.
“Providing the RV market with the right vehicles at the right time will be Monaco RV’s first order of business,” Allen said. “Our management teams will spend these first few weeks ramping up the business at a pace commensurate with demand.”
Navistar announced on March 26 that it entered into a non-binding agreement to purchase certain Monaco Coach Corporation assets and would work through the bankruptcy court to purchase the assets. A final Sale Order was approved in bankruptcy court on May 22.