Thor Industries CEO Bob Martin on Monday told CNBC that the company is looking to develop new products and expand its business after purchasing Tiffin Motorhomes in a $300 million deal.
The acquisition gives Thor, a recreational vehicle maker based in Indiana, a manufacturer of high-end motorhomes based in Alabama that brought in $800 million in RV sales in the 2020 fiscal year.
Thor reported $8.17 billion of revenue in fiscal 2020, up about 20% from $6.77 billion recorded the year prior.
“We’re always an opportunistic buyer, and Tiffin is one of these companies that’s 48 years old, has an incredible brand, a great selection of products, but actually a selection of products that have yet to come that we think we can help them develop,” Martin said in a “Mad Money” interview.
The purchase gives Thor exposure to the American South outside of the tight labor market in northern Indiana, said Martin, who sees room for expansion in Alabama and neighboring Mississippi “for many years to come.” Thor’s portfolio includes manufacturers in Indiana and Ohio.
Tiffin, a family-owned enterprise, will continue to headed by the family and retain its name as an entity under Thor. The company produces multiple motorhomes, including Allegro Breeze, Allegro Red, Allegro Bus and Zephyr among other products.
“Tiffin is one of those premium brands that when Mr. Tiffin called, we definitely had to talk, no matter what,” Martin said.
Shares of Thor Industries rose more than 4% on Monday, closing at $99.92. The stock is up more than 34% year to date.
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Source: Business - cnbc.com
