Kiwi rental giant takes slice of American market
Tourism Holdings Limited (THL), which operates the Maui and Britz brands in Australia and New Zealand, is expanding into the American motorhome rental market by acquiring Los Angeles-based Road Bear RV.The New Zealand tourism company has entered into an agreement with the owners of JJ Motorcars Inc. (trading in the US as Road Bear RV), for THL to purchase the company for US$17 million.
THL Chief Executive Officer, Grant Webster said that Road Bear RV operates a similar model to the company’s Australian and New Zealand campervan and motorhome rental businesses and the acquisition “is consistent with our strategy to build on the rentals business model that is already so well established in New Zealand and Australia”.
“The USA market is very large – there are reported to be 8.2 million owners of caravans and RVs or motorhomes and an estimated 6000-8000 such vehicles are available for rental in the peak season of June through September,” Webster said. “The business we are buying is small in that context, but has a strong market position with a premium offering.”
Webster said that the deal, which should be signed off by December 31, will “broaden our revenue base and smooth our cash flow through the year, as Road Bear’s high season is at the opposite end of the calendar to that for the New Zealand and Australian businesses”.
Road Bear currently operates between 350 and 450 rental vehicles from five branches located in Los Angeles, San Francisco, Denver, Las Vegas and New York. It rents motorhomes ranging in size from 23 to 32ft in length from manufacturers including Coachmen, Fleetwood, Four Winds and Winnebago.
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