Rapido SAS Receives Court Approval for the Purchase of the Roadtrek RV Brand
TORONTO, June 18, 2019 /CNW/ - Rapido Group, owner of the Westfalia brand, is pleased to announce it has received the approval of the Ontario Superior Court of Justice (Commercial List) (the "Court") to acquire substantially all of the assets related to the Roadtrek RV brand ("Roadtrek"), an operating division of Erwin Hymer Group North America Inc. ("EHGNA"), a company in the midst of receivership proceedings (the "Transaction").
On application by Corner Flag LLC, the Court granted an Order on February 15, 2019 appointing Alvarez & Marsal Canada Inc. as receiver and manager ("Receiver"), of all of the assets, undertakings and properties of EHGNA. The Receiver commenced a sale process and accepted qualified bids until April 3, 2019. Bids were accepted for a significant portion of the assets owned by EHGNA and preference was given to those bids that contemplated operating the business as a going concern. Rapido's letter of intent (the "LOI") was accepted as a winning bid on Friday, April 12, 2019.
Following the execution of the LOI, Rapido worked with the Receiver to negotiate and finalize a definitive asset purchase agreement dated May 31, 2019 (the "Asset Purchase Agreement"). The Asset Purchase Agreement contains the terms and conditions pursuant to which Rapido will purchase substantially all of the Roadtrek business. Rapido has also negotiated and signed certain ancillary documents, including a transition services agreement (the "TSA") to assist Rapido with resuming Roadtrek operations as soon as possible. Rapido is in the process of assuming the lease of the existing manufacturing and assembly facility located at 20 Tyler Street in Cambridge, Ontario, which will be the North American headquarters for the new Roadtrek business.
Yesterday morning, the Court issued an Approval and Vesting Order (the "Order"), approving the Transaction, the Asset Purchase Agreement and the TSA.
Rapido and the Receiver are now working towards closing the transaction by no later than July 5, 2019. Rapido plans to resume operations as soon as possible thereafter and is excited to re-establish and re-invigorate the Roadtrek business. Rapido is in the process of hiring a workforce that could grow eventually to more than 200 employees.
The acquisition of Roadtrek signifies Rapido's return with Westfalia to the North American leisure vehicle market. North America is familiar territory for Rapido Group, as Westfalia was a well-known brand in North America in the 1960's and 1970's. Rapido Group President Pierre Rousseau said "We are excited by the opportunity to re-launch the Roadtrek business and are proud of our commitment to the Town of Cambridge and the Province of Ontario, where we will base our North American operations and employ well over 100 local workers by the end of the summer of 2019."
ABOUT RAPIDO
The Rapido Group's story began in France in 1948. The company was started by a cabinet maker, Constant Rousseau, and evolved into a general carpentry shop and eventually to a caravan and motorhome manufacturer. Rapido was officially formed in 1961 and has since utilized a brand creation/acquisition strategy to become one of the biggest recreational vehicle groups in Europe. The family-owned company is currently based in Mayenne, France, and employs approximately 1,500 employees across its various plants in France, Germany, Italy and Great Britain. Rapido remains 100% family-run, with Constant Rousseau's son (Pierre Rousseau) acting as President of the company, and his grandson (Nicolas Rousseau) acting as Deputy General Director.
ADVISORS
Cassels Brock & Blackwell LLP is acting as legal counsel to Rapido. Osler Hoskin & Harcourt LLP is acting as legal counsel to the Receiver.
SOURCE Rapido SAS
