Rev Group Files for IPO

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Rev Group has filed an S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering (IPO). The company did not release and pricing details about this offering, but the filing is valued up to $100 million, although this number is usually just a placeholder. The company has yet to decide on which exchange to list its shares, but it intends to list under the symbol REVG.

The underwriters for the offering are Goldman Sachs, Morgan Stanley, Baird, BMO Capital Markets, Credit Suisse, Deutsche Bank, Jefferies, Wells Fargo and Stifel.

This company is a leading designer, manufacturer and distributor of specialty vehicles and related aftermarket parts and services. Rev serves a diversified customer base primarily in the United States through three segments: Fire & Emergency, Commercial and Recreation.

Rev provides customized vehicle solutions for applications including: essential needs (ambulances, fire apparatus, school buses, mobility vans and municipal transit buses), industrial and commercial (terminal trucks, cut-away buses and street sweepers) and consumer leisure (recreational vehicles (RVs) and luxury buses).

Its brand portfolio consists of 26 well-established principal vehicle brands, including many of the most recognizable names within its served markets. Several of its brands pioneered their specialty vehicle product categories and date back more than 50 years. The firm believes that in most of its markets, it holds the first or second market share position.

The company noted its results from fiscal year 2014 to July 30, 2016:

  • Rev increased net sales to $1.844 billion, a compound annual growth rate (CAGR) of 4.5%.
  • Net income grew to $31 million, representing a CAGR of 575%.
  • Adjusted Net Income grew to $51 million, representing a CAGR of 122%.
  • Adjusted EBITDA grew to $117 million, representing a CAGR of 50%.

The company intends to use the net proceeds from the offering to redeem its outstanding senior secured notes and pay the related call premium, as well as to pay for other outstanding debt. The remainder will be used for working capital and general corporate purposes.