Tourism Holdings (THL) will pay $65.3 million for U.S. RV rental and sales business El Monte RV to expand its operations in the world’s largest RV market, according to New Zealand business website Scoop News.
For Tourism Holdings, the acquisition of El Monte will elevate it to the second-largest RV rental operator in North America behind rival Cruise America without increasing overall fleet numbers, which could dent prices, Scoop News reported.
El Monte allows Tourism Holdings to develop a broad-based RV rental and sales business in the U.S., similar to its New Zealand business, and its mix of international and domestic customers and older fleet is complementary to Tourism Holdings’ smaller and more premium Road Bear operation in the U.S., according to Scoop News.
“We are looking forward to combining fleet procurement, operating different rental brands and maximizing RV sales through both our traditional wholesale channels and the El Monte retail sites; a model we know,” said Tourism Holdings Chief Executive Grant Webster. “This is a much lower risk strategy than trying to grow to an equivalent market share from the Road Bear platform.”