Holiday RV Completes 1st Acquisition In RV Industry Consolidation Plan
17 November 1999
Holiday RV Superstores Completes First Acquisition In RV Industry Consolidation PlanRV Dealer Chain Nearly Doubles Its Size With Addition Of Florida-based County Line ORLANDO, Fla., Nov. 17 -- Holiday RV Superstores, Inc. today announced it completed the acquisition of County Line Select Cars and RVs, Inc. for $6.5 million in cash and notes convertible to stock. Holiday RV, an Orlando, Fla.-based RV-and-boat dealership chain, said the strategic acquisition provides added sales strength in major product lines, key service and warranty competencies in the dominant Florida market, and top level management resources. The integration of County Line's five Florida stores brings Holiday RV to a total of eight locations in the nation's second largest RV retail market. "We are pleased to make a market leader like County Line the first acquisition in our pursuit of RV industry consolidation," said Hardee McAlhaney, president and chief executive officer of Holiday RV Superstores. "They are proven operators in the RV business, and we expect to see significant benefits from adding County Line's management, retail and service expertise to our team. "Most importantly, we expect this transaction will be accretive to earnings, reflecting our commitment to adding profitability, not just revenue." County Line, which posted revenues of approximately $70 million for the 12 months ended August 31, 1999, has dealerships in the central Florida cities of Clermont, Inverness, Leesburg and two locations in Ocala. Holiday RV said the County Line executive management team, including founder and president Armando Alonso and vice president Frank Alonso, have joined Holiday RV. Armando and Frank have more than 40 years of combined experience in the RV industry. "With this large acquisition completed, we now have the operational depth to accelerate our buying activity," said Michael Riley, chairman of Holiday RV Superstores and Atlas Recreational Holdings. "The market is ripe for a strong, national RV dealer brand that can provide consumers with the depth of product and sales and service support they demand. We are committed to quickly establishing Holiday RV as the leader in the $16 billion RV industry and achieving breakout performance for our shareholders." The acquisition of County Line is Holiday RV's first since the June 30, 1999 purchase of a controlling interest in the Company by Atlas Recreational Holdings, Inc., a Florida-based investment group. At that time, Holiday RV announced its intent to consolidate the retail RV and marine markets. Holiday RV Superstores (http://www.holidayrv.com ) is the nation's only publicly traded chain of dealerships specializing in sales of recreational vehicles and boats. The Company sells, services and finances more than 50 RV and boat brands -- including Airstream, Beaver, Fleetwood, National RV, Rexhall, Thor, Winnebago, Bayliner, Sea Ray and Mariah -- from its chain of 12 dealerships in California, Florida, New Mexico and South Carolina. The statements contained in this news release include certain predictions and projections that may be considered forward-looking statements under securities laws. These statements involve a number of risks and uncertainties that could cause results to differ materially including, but not limited to, the performance of the recreational vehicle or boat industries, certain customers or affiliated companies, as well as other economic, competitive, governmental and technological factors affecting the Company's operations, markets, products, services and prices.