Berkshire Hathaway Subsidiary Keeps Coachmen Alive By Acquiring RV Business
A subsidiary of Warren Buffett's Berkshire Hathaway will acquire the recreational vehicle division of Coachmen Industries.
The buyer is Forest River, which describes itself as "America's Largest Producer of Towable RVs and Cargo Trailers."
While the price is undisclosed, it's presumably another Buffett-style bargain, as Coachmen fights to stay alive.
Coachmen, has seen its stock fall to as low as 48 cents two days ago, down from a 52-week high last December of $6.40.
Today those shares are soaring almost 90 percent to $1.08 as of 1:15p ET today (Friday.) Current price:
In its news release, Coachmen's CEO praises the deal for ending "the speculation over whether Coachmen itself will survive these extraordinarily difficult times."
Forest River will get most of Coachmen's RV assets, including its brands, product lines, and manufacturing operations in Indiana. The buyer has also agreed to offer "continued employment" to almost 85 percent of Coachmen's RV Group employees in that state.
Coachmen will keep its systems-built housing company and a "growing" specialty vehicle business.
Current Berkshire stock prices:
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