Thor Industries and the shareholders of Erwin Hymer Group SE have entered into a definitive agreement for Thor to acquire Erwin Hymer Group for an enterprise value of 2.1 billion euros, with the purchase price to be funded with cash and equity.
Equity consideration will consist of 2.3 million shares of Thor, according to a news release.
The Hymer family will thereby remain engaged in the industry. The combination creates the world’s largest RV manufacturer, with the leading position in both North America and Europe, and establishes a global sales and production footprint for the company.
“It further enables us to go to market with a company that has a 60-plus year track record of excellence within the RV industry represented by outstanding brands that are synonymous with innovation and quality,” Bob Martin, Thor President and CEO, said during a webcast yesterday (September 17, 208) morning.
“Over my 25-plus years in the industry, I have always admired the organization and have been keenly aware of how successfully they compete in the European market with an outstanding record of innovation, product development, and overall excellence.”
Thor expects the transaction to be accretive to earnings in the first year, before taking into account anticipated synergies, purchase accounting adjustments, and transaction-related expenses. Subsequent to closing, Thor intends to repurchase shares both opportunistically and systematically in order to offset the issuance of shares to the Hymer family.
Headquartered in Bad Waldsee, Germany, Erwin Hymer Group is one of the premier manufacturers of RVs in a growing European market. Erwin Hymer Group sells through a worldwide network of more than 1,200 retail dealerships and employs more than 7,300 team members globally. Their product portfolio ranges from lightweight travel trailers to high-end motorhomes. For the fiscal year ended August 31, the Erwin Hymer Group expects to generate revenues of more than $2.9 billion.
“The Erwin Hymer Group has an unparalleled history and reputation as well as a talented management team that is focused on building on that tradition and charting new, attractive growth opportunities for the company,” said Martin.
“This transaction provides Thor a unique opportunity to grow with the European RV market leader.”
“With Thor Industries, our family has found the ideal new owner partner for the Erwin Hymer Group to successfully continue on its long-term growth and internationalization path,” said Christian Hymer, son of the late founder, Erwin Hymer and member of the Erwin Hymer Group Supervisory Board.
“Thor Industries and the Erwin Hymer Group are cut from the same cloth and, in their philosophy, still bear the stamp of their founders. An entrepreneurial mindset, a spirit of innovation and quality leadership are top priorities for both groups.”
“International was a great move for us. The products are very similar,” said Martin. “They are lighter, but with the components, many of the suppliers we share. There are many opportunities for suppliers we use here that aren’t into Europe just yet that may be opportunities to create more benefits for them. And also, some of the suppliers in Europe could help us here.”
“We’re looking forward to opening the next chapter of our company’s history with Thor Industries, and are convinced that we will mutually benefit from each other,” said Martin Brandt, the CEO of the Erwin Hymer Group.
“With Thor Industries, the Erwin Hymer Group will be able to speed up the development of its relatively new activities in the attractive North American market.”
Brandt will continue to lead the Erwin Hymer Group business post-closing as its CEO, reporting directly to Martin. No changes in production facilities or employee levels are anticipated within Erwin Hymer Group or Thor as a direct result of this transaction.
The transaction has been approved by Thor’s board of directors and is expected to close near the end of the calendar year, subject to customary closing conditions, including regulatory and other necessary approvals.
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