PE-backed RV accessories maker Recreation Brands taps Miles Advisory
Mid-market private equity investor Seneca Capital is revving up to meet potential investors for its RV accessories maker and distributor Recreation Brands, which posted $60 million revenue and $10 million EBITDA in the 2023 financial year.
Recreation Brands makes windows and annexes for caravans.
It is understood Seneca has tapped Miles Advisory to look at strategic options for the business, including bank funding and bringing in a strategic equity partner.
Interested parties have been told Recreation Brands is growing strongly, with 30 per cent compounded annual growth rate at the top-line since 2019. Now, it needs fresh funds to realise its development pipeline as well as chase bolt-on acquisitions.
The company has been around since 1988 and is split across two brands, which account for 90 per cent of the sales. Aussie Traveller is a vertically integrated provider of awnings and other RV and camping products, while Xtend Outdoors makes customised annexes and walls.
Awnings and related accessories made up 37 per cent of last year’s sales, followed by annexes (21 per cent), windows (17 per cent) and other components (25 per cent).
It has 700-plus commercial clients and also sells via the direct-to-consumer channel. More than half of its sales came via RV original equipment manufacturers. Direct-to-consumer sales spoke for 17 per cent and trade channels brought in 29 per cent.
The sell-side pitch said Recreation Brands has built strong brand equity in RV, camping and 4WD world. On the back-end it has long-standing supplier relationships and a track record of in-house product development.
ASX-listed fast fashion retailer Lovisa’s former boss, Steve Doyle, chairs Recreation Brands’ board. A former Lovisa business manager, James Barallon, serves as the chief executive officer.
It has been a flagship investment for Seneca Capital, which was founded by former Goldman Sachs executive director Will Charlston and ex turnaround/restructuring consultant Simon Kemp in 2016. It raised a fund in 2022, and has also invested in private ambulance business Absolute Medical Response, and equipment hire outfits Quipco and H2Flow.
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