Thor Industries announced Tuesday that it has agreed to acquire the Erwin Hymer Group in a cash and stock deal valued at $3.6 billion, creating the world’s largest manufacturer of recreational vehicles.
Headquartered in Bad Waldsee, Germany, Erwin Hymer has only recently entered models under the Hymer nameplate in North America, after acquiring the Roadtrek, the largest North American Class B campervan manufacturer. The move will instantly make Thor a leader in the Class B segment, which the company has been lagging behind in. Industry-wide, Class B RV sales are up 30% over last year.
“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 Bob Martin, Thor President and CEO. “This transaction provides Thor a unique opportunity to grow with the European RV market leader. The transaction gives us access to a new market with favorable macro and secular trends affecting RV demand similar to those we have seen in North America. In addition, we see numerous areas for near-term and long-term synergies between the Erwin Hymer Group and our existing subsidiaries and are eager to begin working with the entire Erwin Hymer Group,” added Bob Martin.
Erwin Hymer joins the 17 other Thor subsidiaries, which include Airstream, Jayco, Keystone, and Redwood. Thor is expecting the deal to close by the end of the year. The stock consideration will consist of about 2.3 million Thor shares which the company will buy back some of after closing to offset the issuance of new shares to the Hymer family. Erwin Hymer is expecting to generate revenue of more than 2.5 billion euros in its current fiscal year, via more than 1,200 retail dealerships.