From the South Bend Tribune

By Ed Ronco
Tribune Staff Writer
Wednesday,February 14, 2007

Edition: MICH, Section: business, Page C8 ELKHART --

They've got money in building teddy bears, striped chewing gum, and a chain that serves some incredibly good lettuce wraps.

Now, investors from Connecticut are pouring money into Elkhart-based Heartland RV, in a deal Heartland's president and chief executive called "an extremely attractive marriage."

The actual size of the investment isn't being disclosed, but it comes from Catterton Partners, a Connecticut-based firm that focuses on consumer businesses.

The firm's other investments are in companies such as Breyers Yogurt Co., Build-A-Bear Workshop, Kettle Foods and the P.F. Chang's China Bistro restaurant chain.

This is Catterton's first venture into the RV industry.

"Heartland is a leader in towables, the most attractive segment of the RV industry," Catterton managing partner Scott Dahnke said in a statement. "The company's growth has been driven by a loyal group of satisfied consumers and dealers."

When he says growth, he's talking about Heartland's $9 million in revenue back in 2004, $57 million in 2005, $110 million in 2006 and a projected haul of $200 million in 2007.

Heartland now has more than 400 employees and six brands of fifth-wheel travel trailers and toy haulers.

So why look for new money?

To sustain the growth, said Brian Brady, president and chief executive of privately held Heartland.

But don't think Catterton's investment is going to mean a sudden explosion of growth from Heartland.

"This isn't going to be an overnight metamorphosis," Brady said. "With the investment from Catterton, we at Heartland expect to get even better, not just bigger."

But Catterton's sole focus on investing in consumer-oriented businesses could mean good things for Heartland, Brady said.

"They understand today's consumer."