Towards the end of last year there were huge number of mergers and acquisitions in the motorhome market and it was clear that many firms were struggling to stay afloat in tricky conditions. A drop-off in consumer demand was coupled with a rise in input prices for companies and many motorhome manufacturers and retailers were finding it difficult to meet their wage bill and begin to pay off their borrowings. There has been good news today however, as Yorkshire based RS Motorhomes – a family manufacturer who have been trading for over 25 years – received a sizeable investment from venture capitalists Seneca who will hope to turn the business around and reclaim their investment.
RS have been struggling to match the demands of consumers and they expect to increase their production output to about seven motorhomes a month. This should reduce the waiting times for customers and broaden their appeal. An investment from a venture capitalist will also see potential for expansion in different areas. It has been floated that RS could look into leisure transport and equestrian vehicles to boost sales in the future.
This merger is good news also for the sister industries of the motorhome world. Motorhome insurance providers are reliant on the demand for new motorhomes to bring them new custom and it’s promising that there are buyers who are willing to invest in motorhome manufacturers, especially those based in the UK.
This is one of the first transactions we’ve heard of this year, but this is the sixteenth time that RS have had to be bailed out in twelve months. These sorts of figures show that motorhome manufacturing market in the UK is far from stable and that there are likely to be all sorts of deals and sales throughout this year while firms try to stay afloat.