Two large western Canadian regional vehicle (RV) companies have consolidated in a pact that involves Calgary-based CanaDream Corp. (TSX-Venture:CDN) buying Richmond-based Westcoast Mountain Campers Ltd. for nearly $1.6 million in both cash and stock.
The transaction involves CanaDream buying Westcoast’s fleet, sales receivables, business records, proprietary software and other assets.
Gord Rees, who co-founded Westcoast 35 years ago and is its CEO, has agreed to a five-year non-compete and non-solicitation agreement as well as a two-year consulting agreement with CanaDream.
Rees is considered influential in the RV rental sector given that he played a significant role establishing the RV Rental Association of Canada in 2002 and served four years as president. He is now a board member of the association, which represents RV renters nationwide.
“We are pleased to welcome Gord to CanaDream,” said Brian Gronberg, CEO in a statement. “He brings years of experience and knowledge of the RV Rental Industry that will help build CanaDream's brand and shareholder value.”
CanaDream launched in 1995, when it acquired an ailing company in the same business. It then went public in 1998 and evolved to become one of the largest RV rental and sales companies in Canada.
