Event Overview

The 180-day lockup period for Rev Group (NYSE: REVG) is scheduled to expire on July 26, 2017.

The company’s pre-IPO insiders will then have the opportunity to sell 49.32M shares that are currently restricted from sale. This represents 77.4% of the total shares outstanding. With such a large percentage of the shares becoming available for sale, the event could lead to heavy selling activity and potentially push share price down.

(S-1/A)

The company’s largest shareholder is American Industrial Partners (AIP), an operations and engineering-focused PE firm based in New York, NY. AIP owns 70% of the total shares outstanding. We expect this PE firm will be eager to cash in on gains so that they can move on to other projects. This presents a sell or short opportunity to savvy investors who take a position ahead of the lock-up expiration.

(S-1/A)

Business Summary

Rev Group manufacturers, distributes and designs specialty vehicles and after-market parts and services throughout the US. The company manufactures vehicles for essential needs such as ambulances, school buses, mobility buses, municipal buses and fire trucks. It also manufactures luxury vehicles such as RVs and industrial vehicles. Customers include: municipalities, government agencies, private contractors, consumers and industrial and commercial end users. In 2016, the company sold 17,300 units and had an installed base of vehicles in operation of 240,000. 

Management Highlights

Tim Sullivan serves as chief executive officer and a director of Rev Group, positions he has held since Aug. 2014. He previously served as the CEO and chairman of Gardner Denver Inc. from 2013 to 2014 and the CEO and chairman of Bucyrus International Inc. from 2000 to 2011. Sullivan graduated with his Bachelor of Science in business administration from Carroll University and his MBA from Arizona State University.