June 5, 2009 (FinancialWire) — Navistar International Corp. (NYSE: NAV) said that an affiliate has completed the purchase of certain assets of the recreational vehicle manufacturing business of Monaco Coach Corp. (OTC: MCOAQ) for around $47 million.

Jack Allen, president of Navistar’s North American truck group said that the acquisition “fits our strategy of leveraging our assets to expand our diesel business, serve the end customer through robust parts and service, and will complement our Workhorse chassis business.”

Coburg, Oregon-based Monaco Coach filed for Chapter 11 bankruptcy relief last March 5. The company had manufacturing facilities in Oregon and Indiana and its RV offerings ranged from entry-level priced towables to custom-made luxury models under the Monaco, Holiday Rambler, Safari, Beaver, McKenzie and R-Vision brand names.

The new company, named Monaco RV LLC, will be a wholly-owned affiliate of Navistar’s principal operating company.

Navistar said that purchasing the Monaco Coach assets out of bankruptcy allowed the assets, inventory and intellectual property to be purchased “for a significant discount,” while not assuming the liabilities of Monaco Coach.

Production at Monaco Coach was halted prior to the bankruptcy filing and Navistar said that Monaco RV will resume production at certain facilities in the coming months.

Warrenville, Illinois-based Navistar International is a holding company whose wholly owned subsidiaries produce International brand commercial and military trucks, MaxxForce brand diesel engines, IC Bus brand school and commercial buses, and Workhorse brand chassis for motor homes and step vans.

The company is also a private-label designer and manufacturer of diesel engines for the pickup truck, van and SUV markets.

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