Month: February 2025

SOUTHFIELD, Mich. – Sun Communities, Inc. (NYSE: SUI), a real estate investment trust (REIT) that owns and operates or has an interest in manufactured housing and recreational vehicle communities, today announced that it has entered into a definitive agreement to sell 100% of its interests in the Safe Harbor Marinas business, the largest marina and superyacht servicing business in the U.S., to affiliates of Blackstone Infrastructure. The transaction accelerates Sun’s strategic goal of re-focusing on its core MH and RV segments and significantly enhances its leverage profile and financial flexibility.

Upon the closing of the transaction, Blackstone will purchase Safe Harbor from the company for an all-cash purchase price of $5.65 billion, subject to certain post-closing adjustments. The base purchase price represents an approximate 21x multiple on the estimated 2024 Funds From Operations (“FFO”) of the Safe Harbor business.

The transaction is expected to produce approximately $5.5 billion of pre-tax proceeds after transaction costs, which will strengthen the Company’s balance sheet. Proceeds are anticipated to be used to support a combination of debt reduction, distributions to shareholders and reinvestment in the Company’s core businesses.

Gary Shiffman, chairman and CEO of Sun, said: “We are very pleased with this transaction which further accelerates Sun’s strategy to improve the Company’s leverage profile and refocus on our core segments. On behalf of everyone at Sun, I would like to thank the Safe Harbor team for their dedication and hard work throughout our over four-year partnership. We are incredibly pleased with the performance of Safe Harbor and with the outcome of this highly successful sale process. We anticipate that Blackstone will further Safe Harbor’s position as the leading marina and superyacht servicing business in the U.S.”

Jeff Blau, chair of Sun’s Capital Allocation Committee, commented: “This transaction allows Sun to focus on our core businesses which operate at high margins and produce durable income streams, and we are confident they will continue to deliver strong, consistent long-term growth. Safe Harbor has been an outstanding performer for Sun, and this sale allows us to realize substantial value from our investment, while positioning the Company for future growth and enhanced return opportunities for our stakeholders.”

Transaction Benefits

• Re-focuses Business Strategy. Post-transaction, Sun’s North America MH and RV portfolio is expected to account for approximately 90% of the Company’s Net Operating Income (“NOI”), streamlining its strategic focus as a pure-play MH and RV owner and operator.
• Enhances Financial and Strategic Flexibility. The transaction, once completed, is expected to meaningfully de-leverage Sun’s balance sheet. Initially following the transaction, the Company expects its net debt to trailing 12 months EBITDA, on a pro forma basis, to be reduced from approximately 6.0x to between 2.5x and 3.0x at closing.
• Reinforces Focus on Durable, Annual Income Streams. The transaction is expected to reduce the Company’s exposure to Service, Retail, Dining and Entertainment (“SRD&E”) and other non-annual income streams while positively impacting the Company’s financial metrics including its margin profile, overhead efficiency, capital expenditure requirements and revenue-to-cash flow conversion.
• Realizes Substantial Gain. The transaction is expected to monetize a successful investment, generating strong returns for shareholders, including an estimated book gain of approximately $1.3 billion from Sun’s approximately four-year ownership of Safe Harbor.

Tax Treatment

The company is actively evaluating its available strategies to maximize efficiency for Sun and its shareholders with respect to gains realized from the transaction, including various tax and distribution options. The company expects to provide further guidance on the tax implications of the transaction prior to closing.

Timing

The transaction is subject to customary closing conditions, and the initial closing of the transaction is expected in the second quarter of 2025. Certain properties representing approximately 10% of the total consideration may be transferred and paid for in one or more subsequent closings, subject to receipt of certain third-party approvals.

Advisors

Lazard Frères & Co. is acting as financial advisor and Latham & Watkins LLP and Taft Stettinius & Hollister are acting as legal advisors to the company on the transaction.

Earnings and Transaction Discussion

The company will be reporting its fourth quarter and year-end earnings results after the market closes on Feb. 26. The company will host a conference call to discuss these results at 2 p.m. ET Feb. 27.

The company intends to discuss the transaction on the call after which additional questions can be answered.
To Participate in the Conference Call, dial U.S. and Canada: (877) 407-9039 in the U.S. and Canada or (201) 689-8470 for international participants. The conference call will also be available live on the Company’s website www.suninc.com.

The post Sun Communities Sells Safe Harbor Marinas for $5.65B Cash first appeared on RVBusiness - Breaking RV Industry News.

SOUTHFIELD, Mich. – Sun Communities, Inc. (NYSE: SUI), a real estate investment trust (REIT) that owns and operates or has an interest in manufactured housing and recreational vehicle communities, today announced that it has entered into a definitive agreement to sell 100% of its interests in the Safe Harbor Marinas business, the largest marina and superyacht servicing business in the U.S., to affiliates of Blackstone Infrastructure. The transaction accelerates Sun’s strategic goal of re-focusing on its core MH and RV segments and significantly enhances its leverage profile and financial flexibility.

Upon the closing of the transaction, Blackstone will purchase Safe Harbor from the company for an all-cash purchase price of $5.65 billion, subject to certain post-closing adjustments. The base purchase price represents an approximate 21x multiple on the estimated 2024 Funds From Operations (“FFO”) of the Safe Harbor business.

The transaction is expected to produce approximately $5.5 billion of pre-tax proceeds after transaction costs, which will strengthen the Company’s balance sheet. Proceeds are anticipated to be used to support a combination of debt reduction, distributions to shareholders and reinvestment in the Company’s core businesses.

Gary Shiffman, chairman and CEO of Sun, said: “We are very pleased with this transaction which further accelerates Sun’s strategy to improve the Company’s leverage profile and refocus on our core segments. On behalf of everyone at Sun, I would like to thank the Safe Harbor team for their dedication and hard work throughout our over four-year partnership. We are incredibly pleased with the performance of Safe Harbor and with the outcome of this highly successful sale process. We anticipate that Blackstone will further Safe Harbor’s position as the leading marina and superyacht servicing business in the U.S.”

Jeff Blau, chair of Sun’s Capital Allocation Committee, commented: “This transaction allows Sun to focus on our core businesses which operate at high margins and produce durable income streams, and we are confident they will continue to deliver strong, consistent long-term growth. Safe Harbor has been an outstanding performer for Sun, and this sale allows us to realize substantial value from our investment, while positioning the Company for future growth and enhanced return opportunities for our stakeholders.”

Transaction Benefits

• Re-focuses Business Strategy. Post-transaction, Sun’s North America MH and RV portfolio is expected to account for approximately 90% of the Company’s Net Operating Income (“NOI”), streamlining its strategic focus as a pure-play MH and RV owner and operator.
• Enhances Financial and Strategic Flexibility. The transaction, once completed, is expected to meaningfully de-leverage Sun’s balance sheet. Initially following the transaction, the Company expects its net debt to trailing 12 months EBITDA, on a pro forma basis, to be reduced from approximately 6.0x to between 2.5x and 3.0x at closing.
• Reinforces Focus on Durable, Annual Income Streams. The transaction is expected to reduce the Company’s exposure to Service, Retail, Dining and Entertainment (“SRD&E”) and other non-annual income streams while positively impacting the Company’s financial metrics including its margin profile, overhead efficiency, capital expenditure requirements and revenue-to-cash flow conversion.
• Realizes Substantial Gain. The transaction is expected to monetize a successful investment, generating strong returns for shareholders, including an estimated book gain of approximately $1.3 billion from Sun’s approximately four-year ownership of Safe Harbor.

Tax Treatment

The company is actively evaluating its available strategies to maximize efficiency for Sun and its shareholders with respect to gains realized from the transaction, including various tax and distribution options. The company expects to provide further guidance on the tax implications of the transaction prior to closing.

Timing

The transaction is subject to customary closing conditions, and the initial closing of the transaction is expected in the second quarter of 2025. Certain properties representing approximately 10% of the total consideration may be transferred and paid for in one or more subsequent closings, subject to receipt of certain third-party approvals.

Advisors

Lazard Frères & Co. is acting as financial advisor and Latham & Watkins LLP and Taft Stettinius & Hollister are acting as legal advisors to the company on the transaction.

Earnings and Transaction Discussion

The company will be reporting its fourth quarter and year-end earnings results after the market closes on Feb. 26. The company will host a conference call to discuss these results at 2 p.m. ET Feb. 27.

The company intends to discuss the transaction on the call after which additional questions can be answered.
To Participate in the Conference Call, dial U.S. and Canada: (877) 407-9039 in the U.S. and Canada or (201) 689-8470 for international participants. The conference call will also be available live on the Company’s website www.suninc.com.

The post Sun Communities Sells Safe Harbor Marinas for $5.65B Cash first appeared on RVBusiness - Breaking RV Industry News.

Fortune Magazine online writes, “When Warren Buffett bought an obscure RV maker he promised to pay the CEO whatever he asked– it’s not a tactic Buffett recommends, but the gamble paid off.”

Warren Buffett honored Pete Liegl, the late CEO of Forest River, in his annual letter, highlighting how Liegl’s leadership turned the RV company into one of Berkshire Hathaway’s most successful investments. Buffett praised Liegl’s no-nonsense business style, his modest salary request, and his exceptional management, emphasizing that a single great decision—like acquiring Forest River—can have a lasting, transformative impact.

Warren Buffett says not many people will know the name Pete Liegl, and yet he is a man who contributed “many billions” to the wealth of Berkshire Hathaway shareholders.

Click here to see the complete article at Fortune.com.

The post Warren Buffett Speaks Fondly of Pete Liegl in Annual Letter first appeared on RVBusiness - Breaking RV Industry News.

In this episode of RVBusiness Capitol Talk, Keystone RV executives John Runels, (President), Matt Christensen (General Manager), and Scott Taylor, Product Manager) offer an update to RVB’s Rick Kessler and Sherm Goldenberg on the state of the retail market from their perspective as well as the reasons why the Cougar finished 2024 as North America’s No.1-selling fifth-wheel brand.

The RVB Capitol Talk series is sponsored by Airxcel Inc.

The post Capitol Talk: Keystone RV Execs on Market, No. 1 Cougar first appeared on RVBusiness - Breaking RV Industry News.

In this episode of RVBusiness Capitol Talk, Keystone RV executives John Runels, (President), Matt Christensen (General Manager), and Scott Taylor, Product Manager) offer an update to RVB’s Rick Kessler and Sherm Goldenberg on the state of the retail market from their perspective as well as the reasons why the Cougar finished 2024 as North America’s No.1-selling fifth-wheel brand.

The RVB Capitol Talk series is sponsored by Airxcel Inc.

The post Capitol Talk: Keystone RV Execs on Market, No. 1 Cougar first appeared on RVBusiness - Breaking RV Industry News.

ELKHART, Ind. – Patrick Industries Inc. (NASDAQ: PATK) announced today that it has completed the acquisition of Spring Lake, Mich.-based Medallion Instrumentation Systems LLC, a premier provider of customized instrumentation and vehicle electronics for marine, RV, powersports, on-highway and military markets. Medallion’s engineering team provides complete systems solutions that cater to customer needs, including digital switching, lighting controls, integrated audio, sensor products, wire harnessing, gauges and LCD touchscreen displays. Medallion’s 2024 revenue was approximately $38 million.

“We are thrilled to welcome the entire Medallion team to the Patrick family as we advance our mission of providing full-solutions packages to our customers,” said Andy Nemeth, Chief Executive Officer of Patrick. “With the growing customer preference towards digital switching, custom LCD displays, gauges and controllers in the Outdoor Enthusiast space, this acquisition purposefully connects our complement of existing product offerings into a complete technology solution that can be customized to our customer’s vision and needs. In tandem with our strong mechanical expertise and customer relationships, Medallion’s engineering, design, and sales capabilities offer an exciting opportunity to further expand our presence in the marine, powersports, and RV markets.”

Jeff Sands, Chief Executive Officer of Medallion, commented, “The Medallion team and I are energized by the opportunity to join Patrick and continue our mission of providing high-quality solutions tailored to the needs of our valued customers. We believe Patrick’s deep experience, capabilities and resources open up significant opportunities to grow our business in both our existing end markets and in those in which we are currently underpenetrated.” 

Consistent with other acquisitions, Medallion will continue to operate under its existing brand name and within its current facility.

The post Patrick Acquires Medallion Instrumentation Systems LLC first appeared on RVBusiness - Breaking RV Industry News.

Following a loud public outcry about job cuts at the National Park Service — and a relentless media campaign from outdoors enthusiasts across the country — it looks like the Trump administration has reconsidered, according to the Los Angeles Times.

A plan to eliminate thousands of seasonal workers at the beloved federal agency appears to have been reversed.

Last month, prospective seasonal employees — the people who collect the entrance fees, clean the trails and restrooms and help rescue injured hikers — received emails saying their job offers for the 2025 season had been rescinded.

This week, a memo sent from the Department of Interior to park service officials said the agency could hire 7,700 seasonal employees this year, up from the roughly 6,300 who have been hired in recent years.

If fully implemented, that would be a notable exception to the government-wide hiring freeze imposed when the Trump administration clamped down on the federal bureaucracy, threatening to eliminate entire agencies, offering “deferred resignation” to almost all federal workers and firing tens of thousands of career employees.

The memo addressed only temporary seasonal employees. It said nothing about the roughly 1,000 members of the National Park Service’s permanent workforce who were fired Friday (Feb. 14). They were included in the administration’s multiagency purge of tens of thousands of probationary federal employees, mostly people in the first couple of years of their careers who have fewer job protections than more seasoned employees.

Probationary employees represent about 5% of full-time staff at the park service.

To read more, click here. 

The post Trump Admin Backtracks on Laying Off NPS Workers first appeared on RVBusiness - Breaking RV Industry News.

WASHINGTON, D.C. – Most drivers saw few changes at the pump this past week, as the national average for a gallon of gas remained steady at $3.16. The national average per kilowatt hour of electricity at a public EV charging station stayed the same at 34 cents.

According to new data from the Energy Information Administration (EIA), gasoline demand decreased from 8.57 million b/d last week to 8.23. Total domestic gasoline supply dropped from 248.1 million barrels to 247.9. Gasoline production also decreased last week, averaging 9.2 million barrels per day. Today’s national average for a gallon of gas is $3.16, 4 cents higher than a month ago and 11 cents lower than a year ago. 

Oil Market Dynamics

At the close of Wednesday’s formal trading session, WTI increased 40 cents to settle at $72.25 a barrel. The EIA reports that crude oil inventories increased by 4.6 million barrels from the previous week. At 432.5 million barrels, U.S. crude oil inventories are about 3% below the five-year average for this time of year.

Quick Gas and Electricity Stats

Gas

The nation’s top 10 most expensive gasoline markets are California ($4.84), Hawaii ($4.55), Washington ($4.14), Nevada ($3.87), Oregon ($3.77), Alaska ($3.45), Arizona ($3.41), Pennsylvania ($3.36), Illinois ($3.27), and Washington, DC ($3.25).

The nation’s top 10 least expensive gasoline markets are Mississippi ($2.67), Louisiana ($2.75), Tennessee ($2.76), Texas ($2.76), Oklahoma ($2.78), Kentucky ($2.78), Alabama ($2.79), Arkansas ($2.82), Kansas ($2.83), and Missouri ($2.84).

Electric

The nation’s top 10 most expensive states for public charging per kilowatt hour are Hawaii (55 cents), West Virginia (47 cents), Montana (44 cents), Idaho (42 cents), Tennessee (42 cents), Arkansas (42 cents), New Hampshire (42 cents), Kentucky (41 cents), Alaska (41 cents), and South Carolina (41 cents).

The nation’s top 10 least expensive states for public charging per kilowatt hour are Kansas (22 cents), Nebraska (25 cents), Maryland (25 cents), Missouri (25 cents), Iowa (28 cents), Texas (29 cents), Utah (29 cents), Michigan (29 cents), North Dakota (30 cents), and South Dakota (31 cents).

Drivers can find current gas and electric charging prices along their route using the AAA TripTik Travel planner.

The post AAA: Steady at the Pump; Gas Prices Hit Cruise Control first appeared on RVBusiness - Breaking RV Industry News.

ESSLINGEN and DRESDEN, Germany – As industry and mobility decarbonize, the demand for hydrogen is growing. In order to counteract the two main challenges involved in the widespread provision of the energy source, Purem by Eberspaecher is entering into a strategic partnership with AMBARtec AG. Their common goal is the efficient transport and safe storage of hydrogen, according to a press release.

Market analyses show that hydrogen demand will increase in the coming decades in mobility, industry, and the energy sector. The start-up AMBARtec concerns itself with the challenge of widespread availability. The Saxony-based company is bringing a process for transporting and storing hydrogen onto the market, known as HyCS® technology (Hydrogen Compact Storage Technology).

A strategic partnership signed between AMBARtec AG and Purem by Eberspaecher is intended to drive forward the scaling of the process developed by the start-up. The exhaust technology and acoustics specialist will take over the production of the storage containers in which the hydrogen is stored.

“In our collaboration with AMBARtec, we see great potential for an emerging technology: thanks to our expertise in the area of materials science in relation to hydrogen and our competence in the area of industrialization, we provide considerable added value for the development of new storage and transport options for the energy source,” explains Benjamin Brenkel, Executive Vice President Business Unit Europe.Uwe Pahl, Technical Director at AMBARtec, stresses that: “To implement our HyCS® technology, we need a partner with extensive practical expertise, particularly in automated welding and generally in industrial series production. We have found such a partner in Purem by Eberspaecher.”

Efficient and safe
To store and transport the hydrogen, AMBARtec uses standard, commercially available 20-foot containers. In them, nuggets of iron oxide in vessels serve as a storage medium. During the loading phase, the nuggets are chemically reduced to iron through the addition of hydrogen. The resulting water vapor can be discharged from the vessels and channeled back in a self-contained, sustainable water cycle. During the discharge phase, water vapor is fed into the pressure vessels. An oxidation process of the iron nuggets takes place, thus releasing hydrogen, which can be used for the purposes of energy supply or mobility. The functional principle used is both simple and efficient: initial demonstration systems confirm the high efficiency of the HyCS® technology of over 80 percent electricity to hydrogen. At the same time, the process is significantly safer, less complex and more cost-effective than transporting and storing hydrogen in liquid or gaseous form. 

Expertise in flow routing and materials science
As the automotive industry transforms, Purem by Eberspaecher concerns itself with emerging technologies, including outside the familiar automotive environment. The utilization and production of hydrogen is one of the most promising business areas. Alongside initial approaches to the development and production of high-temperature electrolyzers, the partnership with AMBARtec AG is a further step towards diversification. For the production of the storage vessels and the subsequent integration into the containers, Purem by Eberspaecher contributes its expertise in materials science as well as industrial series production and the process knowledge required for this.

The post Purem by Eberspaecher in Partnership with AMBARtec first appeared on RVBusiness - Breaking RV Industry News.

WASHINGTON, D.C. — Over the last few days, at the direction of the new administration, the Forest Service, BLM, and National Park Service have laid off over 5,000 people, including several Park Rangers, according to a release from the Outdoor Alliance, an association of outdoor enthusiast organizations with a mission to conserve public lands.

These reductions will make it harder for agencies to care for public lands and ensure safe, enjoyable outdoor experiences, the release continued.

Over the last 10 years, staffing at land management agencies has steadily declined even as visitation has increased (source). Since 2010, the NPS has seen a 20% reduction in full-time staff despite a 16% increase in visitation during the same period (source). The Forest Service has been facing ongoing budget shortfalls, which include a recent hiring freeze for seasonal workers, further straining its ability to maintain trails, campgrounds, and recreation sites.

These additional cuts will have significant consequences for outdoor recreation. They could mean long lines or closures of popular trails, parks, forests, and other recreation infrastructure. Contracts for trash removal, toilets, and campgrounds have been stalled and could prevent Americans from getting out and enjoying their public lands safely this summer.

Beyond recreation, these cuts could also hamper emergency response efforts and wildfire prevention. Seasonal employees play an essential role in wildfire preparedness by clearing hazardous fuels and assisting with initial attack efforts—reducing their ranks could increase the risk of uncontrolled wildfires on public lands and in nearby communities.

Louis Geltman, Vice President for Policy and Government Relations at Outdoor Alliance, said, “We are deeply sorry to hear about the staffing cuts rolling in across federal land management agencies. Land managers do incredibly important work, often for long hours at modest pay. They are at the front line for stewarding the resources we all care so much about, and the loss of these workers will have real, tangible impacts on our public lands and waters, outdoor recreation, and community safety as we start to move into fire season.”

Without adequate staffing and resources, our experiences outside, the health of public lands, and the outdoor recreation economy will suffer. Outdoor Alliance has established a quick-action form to help the public send personalized letters to their lawmakers. You can ask your members of Congress to take urgent action to protect the workforce that keeps America’s public lands safe, accessible, and well cared for.

To learn more, please visit www.outdooralliance.org.

About the Outdoor Alliance

Outdoor Alliance is the only organization in the U.S. that unites the voices of outdoor enthusiasts to conserve public lands. A nonprofit coalition comprised of 10 national advocacy organizations, Outdoor Alliance’s members include American Whitewater, American Canoe Association, Access Fund, International Mountain Bicycling Association, Winter Wildlands Alliance, the Mountaineers, the American Alpine Club, the Mazamas, the Colorado Mountain Club, and the Surfrider Foundation. By working with its member coalitions and helping mobilize the involvement of individuals to protect public lands and waters, OA helps ensure public lands are managed in a way that embraces the human-powered experience. Outdoor Alliance — conservation powered by outdoor recreation. Learn more at OutdoorAlliance.org. 

The post Outdoor Alliance: BLM, NPS, USFS Cuts Harm Recreation first appeared on RVBusiness - Breaking RV Industry News.