Apollo buys Coromal and Windsor Caravans

Brisbane-based Apollo Tourism & Leisure has bought the Coromal and Windsor caravan brands for $1 million from Perth-based Fleetwood Corporation.

In a statement to shareholders, Apollo said the acquisition adds “quality, well-known brands which address market segments that complement Apollo’s existing multi-brand portfolio”.

One of Australia’s largest RV companies, the ASX-listed Apollo runs large rental fleets in Australia and overseas, manufactures Winnebago-branded caravans and motorhomes at its Brisbane factory, and is the Australian distributor of Adria RVs.

Apollo also has a 25 per cent stake in RV sharing platform Camplify, and owns a number of caravan dealerships, including Queensland’s Kratzmann Caravans, Sydney RV Group, and George Day Caravans in Western Australia.

The sale price includes ‘goodwill’ as well as some raw materials and stock from the Perth factory. After a transition period of six months, Fleetwood’s Perth factory will be shut down, with up to 200 workers set to lose their jobs. A range of caravans and motorhomes will then be built at Apollo's Brisbane factory under the Fleetwood RV, Coromal and Windsor brand names.

Apollo’s managing director, Luke Trouchet said that “the acquisition provides significant potential for manufacturing synergies due to economies of scale.”

“We are proud to add these established and well-recognised brands to our portfolio and will continue to build on their heritage in the Australian market, ” he said.

Apollo will also relocate its rental and retail caravan operations in Melbourne to the site of  Coromal/Windsor’s current Melbourne dealership in Campbellfield, Victoria.

Despite ramping up production and introducing new models, Fleetwood RV has struggled to turn a profit in recent years, with a predicted $8 million loss for the caravan and camper trailer manufacturing business over the latest financial half-year.

Coromal caravans have been manufactured for more than 40 years, while Windsor caravans were originally built in Melbourne before production was moved to Perth a few years ago.