WARRENVILLE, Ill. — The next step in Navistar International Corporation’s strategy of expanding its diesel business appears to rest with an attempted partial acquisition of Monaco Coach Corporation, a leading manufacturer of recreational vehicles.
The letter of intent announced today included the assumption of certain liabilities stemming from Monaco’s March 5 filing for Chapter 11 bankruptcy relief in Delaware district court. Both companies were said to be performing due diligence towards a definitive purchase agreement in mid-April. Monaco of Coburg, Ore., also has manufacturing facilities in Indiana for its Monaco, Holiday, Rambler, Safari, Beaver, McKenzie and R-Vision luxury brands.
Jack Allen, president of Navistar’s North American truck group, said the asset acquisition would continue supplying the RV’s to existing customers and would complement the Navistar’s Workhouse custom chassis business. Navistar acquired Workhorse Custom Chassis in 2005.
