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GROVE CITY, Ohio - Horton Emergency Vehicles, a brand of REV Group Inc. (NYSE:REVG), has purchased an adjacent building for $2.6 million to expand its manufacturing operations in Grove City, Ohio, according to a company press release. The parent company, currently valued at $2.55 billion, has seen its stock surge 74% over the past year and appears undervalued according to InvestingPro Fair Value estimates.
The newly acquired 20,000-square-foot facility, located at 3873 Gantz Road, will focus on final assembly and delivery processes. The company expects the expansion to reduce delivery times and create additional space in its current assembly operations. Horton plans to begin operations at the new facility in early 2026.
"This expansion allows us to provide additional space for our employees to manufacture and deliver our high-quality Horton ambulances to our dealers and customers quicker," said Mike Albers, vice president and general manager of Horton Emergency Vehicles.
Horton has been based in Grove City since 1994, with its main facility and offices at 3800 McDowell Road. The company's current 100,000-square-foot facility was specifically designed for manufacturing emergency medical vehicles.
Founded in 1968, Horton designs and builds Type 1, Type 3, and Critical Care Transport ambulances for fire departments and hospitals across the United States. The company specializes in custom-designed emergency vehicles with an emphasis on safety features, including its proprietary Horton Occupant Protection System.
REV Group, Horton's parent company, manufactures specialty vehicles and related aftermarket parts through its Specialty Vehicles and Recreational Vehicles segments. The company operates with a moderate debt level and maintains strong liquidity with current assets exceeding short-term obligations. Despite facing challenges with gross profit margins of 14.4%, InvestingPro data shows management has been aggressively buying back shares, contributing to its high shareholder yield. Analysts remain optimistic, with three recently revising earnings estimates upward for the upcoming period. For comprehensive analysis and additional insights on REV Group's financial health, check out the detailed Pro Research Report available on InvestingPro.
In other recent news, REV Group and Terex Corporation have announced a definitive merger agreement to form a diversified specialty equipment manufacturer. Under the terms of the agreement, REV Group shareholders will receive 0.9809 shares of the combined company and $8.71 in cash for each REV Group share. Following the merger, Terex shareholders will hold approximately 58% of the combined entity, with REV Group shareholders owning about 42%. In response to the merger announcement, DA Davidson downgraded REV Group's stock rating from Buy to Neutral, setting a price target of $57.00. The firm cited the merger's valuation at approximately 11 times multiple as a factor in their decision.
Additionally, REV Group reported strong sales figures at major industry events, including a 20% increase in sales at the 56th Annual America's Largest RV Show in Hershey, Pennsylvania. The company's American Coach luxury Class A diesel brand experienced a 66% increase in sales compared to the previous year. DA Davidson had previously reiterated a Buy rating on REV Group, highlighting significant growth in RV chassis orders, which surged 224% year-over-year in August. The firm noted that production figures also showed strong growth, increasing 101% compared to the same period last year.
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