Saturday, April 21, 2007

The Story Behind the Sale of Camping World to Freedom Roads

How does this work? You own three companies. You sell one of the companies you own to another company you own and you pocket $131.8 million in the process. But, now you own two companies instead of three. Hmmmmm.

That’s pretty much what happened yesterday when Affinity Group announced it had “sold” Camping World to Freedom Roads. Affinity Group’s latest annual report shows that Stephen Adams owns 1,407.2 shares or 97.41 percent of the company’s common stock, and Adams’ family members own another 37.5 shares or 2.59 percent of the company.

In announcing the sale, Affinity Group said it would use the $175.8 million it received from the sale of Camping World to pay off all the debt Camping World owes to Affinity Group. Once that the debt is paid off, $131.8 million remains. That means Adams will pocket $128.39 million and his family will net $3.41 million. Nice!
Full Story...
Note: This is an editorial by Greg Gerber editor of RV Trade Digest Magazine

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