ELKHART — Thor Industries has agreed to acquire German manufacturer Erwin Hymer Group, the company announced Tuesday, solidifying the company's position as the world's largest RV manufacturer.
In a news release, Thor said the acquisition would have an "enterprise value" of approximately €2.1 billion and would help give the company a leading position in both North America and Europe as well as establish a global sales and production footprint for the company.
A report in the Wall Street Journal pegged the value of the deal at about $2.2 billion, which includes about $1.9 billion in cash and 2.3 million of Thor’s stock, worth $224.3 million, based on Monday’s closing price. The company will also assume about €300 million in debt.
No changes in production facilities or employee levels are anticipated within Erwin Hymer Group or Thor as a direct result of the transaction, the company said.
Thor, headquartered in Elkhart, is the sole owner of operating subsidiaries that, combined, represent the world’s largest manufacturer of recreational vehicles. The company this year cracked the Fortune 500 list of largest corporations, jumping from No. 540 in 2017 to No. 392 in 2018. Fortune said the company surpassed $7.2 billion in revenues, and that its profits increased by more than 58 percent year over year.
Headquartered in Bad Waldsee, Germany, Erwin Hymer Group produces vehicles under 24 brand names with "a strong reputation for investing in product innovation and a dedication to providing exceptional customer value," Thor said in its release.
The company has a worldwide network of more than 1,200 retail dealerships and employs more than 7,300 team members globally. For the fiscal year ended Aug. 31, the company expects to generate revenues of over €2.5 billion, or about $2.9 billion at the current exchange rate.