Camping World Expands Market Share with Lazydays Flagship Acquisitions

Camping World Holdings, Inc. (NYSE: CWH), the world's largest recreational vehicle (RV) dealer, has recently closed on the purchase of two Lazydays flagship locations in Murfreesboro, TN, and Vancouver, WA. This strategic acquisition aligns with Camping World's growth objectives and is expected to have a significant impact on its market share in the RV dealership industry. Let's delve into the financials of these two acquired locations and explore the potential synergies that can be expected from integrating them into Camping World's operations.

Financials and Market Size

The two acquired locations generated impressive revenue during a trough RV market:

* The Murfreesboro, TN location generated approximately $100 million in revenue on a trailing twelve-month basis.
* The Vancouver, WA location generated around $80 million in revenue during the same period.

These figures compare favorably to Camping World's existing dealerships, which have an average revenue of approximately $60 million per location, with some top-performing stores generating over $100 million. The market size within a 50-mile radius of each acquired dealership is estimated to be around 30,000 new and used RV units sold annually, representing strategic market share growth opportunities for Camping World.

Product Mix and OEM Brands

The acquired locations carry a more traditional mix of travel trailer, fifth wheel, class B, and class C products from top OEM brands like Grand Design, Thor, and Forest River. Integrating these locations into Camping World's operations can provide additional distribution points for their contract manufactured offerings and Good Sam suite of products.

Synergies and Market Share Growth

The acquisition of these two Lazydays flagship locations brings several synergies and market share growth opportunities for Camping World:

1. Incremental Market Share Opportunity: The acquired locations bring top OEM brands and a more traditional RV product mix, aligning with Camping World's strategic priorities. This can help the company increase its market share in the respective regions.
2. Distribution Points: The new locations can serve as additional distribution points for Camping World's contract manufactured offerings and Good Sam products, expanding the company's reach and customer base.
3. F&I Offices: Camping World plans to convert the F&I offices at the acquired locations to Good Sam Business Centers upon closing, further integrating the new dealerships into the company's operations.
4. Cost Savings: By leveraging Camping World's existing infrastructure, such as shared services and centralized purchasing, the company can potentially achieve cost savings and improved operational efficiency at the acquired locations.

In conclusion, the acquisition of the two Lazydays flagship locations in Murfreesboro, TN, and Vancouver, WA, is a strategic move by Camping World that aligns with its growth objectives. The financials of the acquired locations compare favorably to Camping World's existing dealerships, and integrating them into the company's operations can provide synergies such as incremental market share opportunity, additional distribution points, and potential cost savings. As Camping World continues to expand its dealership network, investors should keep a close eye on the company's progress and the potential impact on its market share in the RV dealership industry.