Thor Completes $750M Acquisition
Thor acquires Airxcel in a $750 million deal to improve longterm strategy.
Thor Industries has acquired Airxcel for $750 million, effective September 1. Airxcel will continue to sell RVs to RV manufacturers across the industry and not simply Thor subsidiaries, according to a press release by the company.
“Airxcel will operate independently in Thor’s decentralized business structure, and we will govern this business much like we have managed our Postle Aluminum supply company post acquisition,” Thor President and CEO Bob Martin said. “Airxcel will operate at arm’s length from Thor’s RV OEM companies and will sell to the various Thor brands as they would any other OEM in the RV industry.”
According to the company, the acquisition of Airxcel by THOR provides significant long-term, strategic benefits, including:
- Strengthening the THOR and broader RV supply chain
- Diversifying and growing THOR’s revenue streams
- Expanding THOR’s innovation focus
- Opportunity to enter new product segments with THOR investment
Airxcel generated $680 million in annual revenue in the past year. OEM sales account for 80% of Airxcel’s business, and roughly 30% of Airxcel sales were generated from sales to Thor subsidiaries.
“We have had a long history as a key supplier to the RV industry and to Thor and its many brands specifically, and we are excited to become part of the Thor family of companies,” Airxcel CEO Jeff Rutherford said.
The purchase price is subject to standard post-closing adjustments, and Thor said the price was funded through cash-on-hand and $625 million from expanded Asset-Based Credit.