FLEETWOOD ANNOUNCES PLANNED INVESTMENT IN GERMAN RECREATIONAL VEHICLE COMPANY
FLEETWOOD ANNOUNCES PLANNED INVESTMENT IN
GERMAN RECREATIONAL VEHICLE COMPANY
RIVERSIDE, Calif., July 8 /PRNewswire/ -- Fleetwood Enterprises Inc. (NYSE: FLE) announced today that it has reached an agreement in principle to invest in a German partnership that will own and operate the Niesmann & Bischoff motor home company. Located in Koblenz, Germany, Niesmann & Bischoff GmbH is primarily a manufacturer of quality, luxury-priced motor homes under the "Clou Liner" and "Clou Trend" brand names, which are highly regarded in the European recreational vehicle industry. With a planned 80 percent interest, Fleetwood will be the majority partner, while Niesmann & Bischoff will hold a 20 percent interest.
As proposed, Fleetwood's commitment will involve both the purchase of a portion of the interests of the Niesmann & Bischoff shareholders, as well as the infusion of additional working capital into the firm.
In commenting on the proposed transaction, Fleetwood President Glenn Kummer stated, "We have known Carl-Heinz Niesmann and Rainer Bischoff since 1976 when their company became our first European motor home importer. Their Clou motor homes have an outstanding reputation for quality and value in the European marketplace. We have the highest respect for the personal integrity and product knowledge of the Niesmann & Bischoff people. Working together, we believe we can provide a strong foundation for Fleetwood's entry into the European recreational vehicle marketplace."
Commenting further, Kummer said, "For the past year, Fleetwood has been studying the European recreational vehicle market for possible strategic expansion of our recreational vehicle business. The recreational vehicle market in Europe is larger than the market in the United States. This should provide additional growth opportunities for Fleetwood, especially as the European motor home segment continues to mature. Also, as the European Community (EC) rules take effect and Eastern Europe continues to become more accessible, the market for recreational vehicles should increase significantly."
Fleetwood, headquartered in Riverside, is the nation's leading producer of recreational vehicles and manufactured housing. The company operates 17 recreational vehicle and 27 manufactured housing plants in 17 states and Canada.
/CONTACT: Paul M. Bingham, financial VP, 714-351-3504, or Lyle N. Larkin, 714-351-3535, both of Fleetwood Enterprises/
(FLE) CO: Fleetwood Enterprises Inc.; Niesmann & Bischoff GmbH ST: California IN: AUT SU: EH-JL -- LA003 -- 7278 07/08/92 08:45 EDT