Camping World Set to Acquire Three Locations in Minnesota
Camping World Holdings, Inc. (NYSE: CWH) announced the acquisition of Roth RV, with locations in Bemidji, Grand Rapids, and Deerwood, Minnesota. The transaction is expected to close in the second quarter of 2024, increasing the company's Minnesota location count to 11. The goal is to expand to over 320 locations in the next five years through acquisitions, new store openings, and manufacturer exclusive locations.
Positive
Expansion plans to increase dealership count to over 320 locations in the next five years.
Acquisition of Roth RV to solidify presence in Minnesota with three new locations and addition of leading brands from Forest River.
The acquisition of Roth RV by Camping World Holdings, Inc. is a strategic expansion move that underscores the company's commitment to increasing its market footprint. This acquisition is expected to bolster Camping World's dealership network, enhancing its distribution capabilities and market penetration in the recreational vehicle (RV) sector. From a market research perspective, the deal is likely to facilitate a broader inventory mix and improved customer service, which can translate into increased customer loyalty and revenue growth.
Furthermore, the addition of leading Forest River brands through the acquisition may diversify Camping World's product offerings, potentially improving its competitive edge. In the context of the RV industry, brand diversity is crucial as it caters to different customer preferences and price points. This strategic move should be monitored closely by stakeholders for its potential to drive long-term value creation for Camping World, particularly in the context of their five-year expansion goal to surpass 320 locations.
Financially, the acquisition of Roth RV by Camping World Holdings is a significant investment that can be expected to impact the company's future earnings and cash flow positively. The transaction's timing, set to close in the second quarter of 2024, allows investors to anticipate its effects on the company's balance sheet and income statement. The expansion into 11 locations in Minnesota is indicative of Camping World's aggressive growth strategy, which may be well-received by the market.
It is important to consider the acquisition cost and how it will be financed, as well as the potential synergies that could be realized post-integration. These factors will be instrumental in determining the acquisition's success and its return on investment. Stakeholders should also evaluate the potential risks associated with the expansion, such as integration challenges and market saturation risks, which could affect the company's financial performance.
The acquisition of Roth RV by Camping World Holdings can be viewed through an economic lens as a reflection of the health and dynamics of the consumer discretionary sector, particularly in the RV market. The RV industry is often considered a bellwether for economic trends, as it is sensitive to consumer confidence and disposable income levels. This expansion suggests that Camping World is anticipating stable or growing demand within this sector.
This move can also be seen as a response to macroeconomic factors such as interest rates and fuel prices, which significantly influence RV sales. An economist would assess the timing of the acquisition and the five-year expansion plan in relation to economic forecasts, consumer spending patterns and industry trends to gauge the potential economic impact. The investment in Minnesota also has local economic implications, potentially creating jobs and driving regional economic activity.
01/11/2024 - 07:30 AM
LINCOLNSHIRE, Ill. --(BUSINESS WIRE)--
Camping World Holdings, Inc. (NYSE: CWH) (“Camping World”), the World’s Largest Recreational Vehicle Dealer, today announced that it is set to acquire Roth RV, with locations in Bemidji , Grand Rapids , and Deerwood, Minnesota . The transaction is anticipated to close in the second quarter of 2024 and will increase the Company’s Minnesota location count to 11.
Marcus Lemonis, Chairman and CEO of Camping World commented, “The acquisition of Roth RV further solidifies our presence in Minnesota , with three locations and the addition of leading brands from Forest River. We continue to be focused on our goal to increase our dealership count to over 320 locations over the next five years, through a combination of acquisitions, new store openings, and manufacturer exclusive locations.”
Individuals interested in applying for a position with Camping World may visit http://www.campingworldjobs.com/ .
About Camping World Holdings, Inc.
Camping World Holdings, Inc., headquartered in Lincolnshire, IL , (together with its subsidiaries) is the World’s largest retailer of RVs and related products and services. Our vision is to build a long-term legacy business that makes RVing fun and easy. Our Camping World and Good Sam brands have been serving RV consumers since 1966. We strive to build long-term value for our customers, employees, and shareholders by combining a unique and comprehensive assortment of RV products and services with a national network of RV dealerships, service centers and customer support centers along with the industry’s most extensive online presence and a highly trained and knowledgeable team of employees serving our customers, the RV lifestyle, and the communities in which we operate. We also believe that our Good Sam organization and family of programs and services uniquely enable us to connect with our customers as stewards of the RV enthusiast community and the RV lifestyle. With RV sales and service locations in 43 states, Camping World has grown to become the prime destination for everything RV. For more information, visit www.CampingWorld.com .
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 concerning Camping World and other matters. All statements other than statements of historical facts contained in this press release may be forward-looking statements including statements about the expected pace of growth, timing of the closure of and benefits from the announced acquisition, future store count, future market position, and product offerings at future locations. In some cases, you can identify forward-looking statements by terms such as ‘‘may,’’ ‘‘will,’’ ‘‘should,’’ ‘‘expects,’’ ‘‘plans,’’ ‘‘anticipates,’’ ‘‘could,’’ ‘‘intends,’’ ‘‘targets,’’ ‘‘projects,’’ ‘‘contemplates,’’ ‘‘believes,’’ ‘‘estimates,’’ ‘‘predicts,’’ ‘‘potential’’ or ‘‘continue’’ or the negative of these terms or other similar expressions. The forward-looking statements in this press release are only predictions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition, and results of operations. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance, or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. You should carefully consider the risks and uncertainties that affect our business, including the risk that the acquisition may not close on the timeline expected or at all, as well as the other important risks described in our filings with the Securities and Exchange Commission (“SEC”), including under the caption “Risk Factors” in our Annual Report on Form 10-K filed for the year ended December 31, 2022. These forward-looking statements speak only as of the date of this communication. Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements, whether as a result of any new information, future events or otherwise. You are advised, however, to consult any further disclosures we make on related subjects in our public announcements and filings with the SEC.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240111450137/en/
Brett Andress
InvestorRelations@campingworld.com
Media Outlets:
PR-CWGS@CampingWorld.com
Source: Camping World
What did Camping World Holdings, Inc. (NYSE: CWH) announce?
Camping World Holdings, Inc. (NYSE: CWH) announced the acquisition of Roth RV, with locations in Bemidji, Grand Rapids, and Deerwood, Minnesota.
When is the expected closing date for the acquisition?
The transaction is anticipated to close in the second quarter of 2024.
How many Minnesota locations will Camping World have after the acquisition?
The acquisition will increase the company's Minnesota location count to 11.
What is the company's goal for dealership count in the next five years?
The goal is to increase the dealership count to over 320 locations in the next five years through a combination of acquisitions, new store openings, and manufacturer exclusive locations.
Where can individuals apply for a position with Camping World?
Individuals interested in applying for a position with Camping World may visit http://www.campingworldjobs.com/.
