Harley Closes Sale of RV Unit

03/11/96

Reuters reported that Harley Davidson has finalized the sale of their Holiday Rambler Recreational Vehicle division. Monaco Coach company bought the operation for $50 million. Monaco makes luxury Class A motor homes. Along with the manufacturing facilities for the Holiday Ramblers, Monaco bought 10 of 14 dealerships. Monaco paid $23 million in cash, $3 million in preferred stock, a $12 million note and will assume certain liabilities.

Harley Davidson first announced the sale in January, and has repeatedly stated that it decided to sell the RV unit in order to focus on meeting ever increasing demand for Harley motorcycles. Harley Davidson is also trying to sell its commercial truck and molded plastics businesses.

Harley bought Holiday Rambler of Wakarusa, Indiana in December, 1986. Monaco is planning to reduce existing overhead at the plant and to sell the 10 dealerships it bought. Harley said that they saved $10 million in cash by reducing working capital in the RV plant since January.

Paul Dever -- The Auto Channel