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Thor (THO) Expands Portfolio on Tiffin Motorhomes Buyout
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THOR Industries, Inc. (THO - Free Report) recently announced the acquisition of Tiffin Motorhomes, Inc. and related companies, collectively referred as Tiffin Group, in a deal worth $300 million. The purchase was funded through a combination of cash and borrowings from the company's existing asset-based credit facility.
The buyout, executed on Dec 18, includes the acquisition of Tiffin Motorhomes, Vanleigh RV and other associated operating entities.
Tiffin Motorhomes, based in Alabama and Mississippi, produces a premium fleet of both gas and diesel-powered Class A Motorhomes, including the Allegro Breeze, Allegro Red 340, Allegro Red, Open Road Allegro, Phaeton, Allegro Bus and Zephyr models. The company also produces a premium Class C product line — The Wayfarer.
Tiffin Motorhomes generated approximately $800 million from RV sales in fiscal 2020 (ended Feb 28, 2020), approximately 90% of which came in from motorized unit sales and 10% was from towable unit sales.
Vanleigh RV, operating in Mississippi, has a product line consisting of fifth-wheel towable products, including the Pinecrest, Vilano and Beacon models.
Additional companies purchased within the Tiffin Group include Alabama-based Wynne Enterprises, Alabama-based Roma Enterprises, Alabama-based Tiffin Door Co., Mississippi-based Water-Way and Alabama-based Drive-A-Way of Red Bay.
Per the agreement, Tiffin Group will operate as a stand-alone division within the Thor family, and the Tiffin family, along with its experienced management team, would continue managing it.
Benefits of the Acquisition
Indiana-based Thor is the largest manufacturer of recreational vehicles (RV) in the world with a market cap of $5.5 billion. This American company builds a variety of RVs in North America and Europe, and sells these vehicles, along with related parts and accessories, to independent, non-franchise dealers throughout the United States, Canada and Europe. It has emerged as one of the leaders in the European RV industry on the acquisition of Erwin Hymer Group last February.
Tiffin is an Alabama-based manufacturer of high-end recreational vehicles (RV) famous for its premium product quality and exceptional customer satisfaction.
The Tiffin brand is celebrated for its quality and customer satisfaction. The company has a robust foothold in the luxury class A motorhome segment, which will complement Thor's existing North American portfolio.
It was essential for Tiffin to find the right ally who could be trusted for fortifying its business in the days to come and Thor turned out to be the one. The latest buyout will, in fact, enable Tiffin to evolve its business in a manner that is consistent with its previous growth strategy.
Thor’s current plan of action to enable its companies to compete aggressively with one another and adopt a decentralized business model for the different companies was the key motivating factor for Tiffin to proceed with the buyout. Thor’s existing strategy would help Tiffin work as an independent entity and continue to cater its existing customers who are fans of the Tiffin brand. The buyout would also enable Tiffin achieve new heights, while maintaining the Tiffin culture and brand integrity that gives it an edge over its competitors.
Thor has a reputation of being an opportunistic buyer, acquiring companies that meet specific criteria. The acquisition of Tiffin is in sync with Thor’s long-term strategy of buying successful companies with robust management teams, top-quality operations, excellent product line-up and a solid dealer network, which in turn can take advantage of the latter’s financial stability and resources to fuel growth. In fact, the transaction opens up scope for Thor to expand south outside of the tight labor market in northern Indiana and will also boost its existing product portfolio.
As the RV market is fiercely competitive amid low barriers of entry, Thor considers Winnebago Industries (WGO - Free Report) , Cavco Industries (CVCO - Free Report) and Skyline Corporation (SKY - Free Report) as its closest peers.
Shares of the company have surged 36.6% year to date, outperforming its industry’s rally of 18.7%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
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Thor (THO) Expands Portfolio on Tiffin Motorhomes Buyout
THOR Industries, Inc. (THO - Free Report) recently announced the acquisition of Tiffin Motorhomes, Inc. and related companies, collectively referred as Tiffin Group, in a deal worth $300 million. The purchase was funded through a combination of cash and borrowings from the company's existing asset-based credit facility.
The buyout, executed on Dec 18, includes the acquisition of Tiffin Motorhomes, Vanleigh RV and other associated operating entities.
Tiffin Motorhomes, based in Alabama and Mississippi, produces a premium fleet of both gas and diesel-powered Class A Motorhomes, including the Allegro Breeze, Allegro Red 340, Allegro Red, Open Road Allegro, Phaeton, Allegro Bus and Zephyr models. The company also produces a premium Class C product line — The Wayfarer.
Tiffin Motorhomes generated approximately $800 million from RV sales in fiscal 2020 (ended Feb 28, 2020), approximately 90% of which came in from motorized unit sales and 10% was from towable unit sales.
Vanleigh RV, operating in Mississippi, has a product line consisting of fifth-wheel towable products, including the Pinecrest, Vilano and Beacon models.
Additional companies purchased within the Tiffin Group include Alabama-based Wynne Enterprises, Alabama-based Roma Enterprises, Alabama-based Tiffin Door Co., Mississippi-based Water-Way and Alabama-based Drive-A-Way of Red Bay.
Per the agreement, Tiffin Group will operate as a stand-alone division within the Thor family, and the Tiffin family, along with its experienced management team, would continue managing it.
Benefits of the Acquisition
Indiana-based Thor is the largest manufacturer of recreational vehicles (RV) in the world with a market cap of $5.5 billion. This American company builds a variety of RVs in North America and Europe, and sells these vehicles, along with related parts and accessories, to independent, non-franchise dealers throughout the United States, Canada and Europe. It has emerged as one of the leaders in the European RV industry on the acquisition of Erwin Hymer Group last February.
Tiffin is an Alabama-based manufacturer of high-end recreational vehicles (RV) famous for its premium product quality and exceptional customer satisfaction.
The Tiffin brand is celebrated for its quality and customer satisfaction. The company has a robust foothold in the luxury class A motorhome segment, which will complement Thor's existing North American portfolio.
It was essential for Tiffin to find the right ally who could be trusted for fortifying its business in the days to come and Thor turned out to be the one. The latest buyout will, in fact, enable Tiffin to evolve its business in a manner that is consistent with its previous growth strategy.
Thor’s current plan of action to enable its companies to compete aggressively with one another and adopt a decentralized business model for the different companies was the key motivating factor for Tiffin to proceed with the buyout. Thor’s existing strategy would help Tiffin work as an independent entity and continue to cater its existing customers who are fans of the Tiffin brand. The buyout would also enable Tiffin achieve new heights, while maintaining the Tiffin culture and brand integrity that gives it an edge over its competitors.
Thor has a reputation of being an opportunistic buyer, acquiring companies that meet specific criteria. The acquisition of Tiffin is in sync with Thor’s long-term strategy of buying successful companies with robust management teams, top-quality operations, excellent product line-up and a solid dealer network, which in turn can take advantage of the latter’s financial stability and resources to fuel growth. In fact, the transaction opens up scope for Thor to expand south outside of the tight labor market in northern Indiana and will also boost its existing product portfolio.
As the RV market is fiercely competitive amid low barriers of entry, Thor considers Winnebago Industries (WGO - Free Report) , Cavco Industries (CVCO - Free Report) and Skyline Corporation (SKY - Free Report) as its closest peers.
Thor currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of the company have surged 36.6% year to date, outperforming its industry’s rally of 18.7%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Click here for the 6 trades >>