ELKHART — Thor Industries Friday announced the acquisition of Jayco Corp. for approximately $576 million in cash.
Company officials described the transaction, executed and effective June 30, as a “unique and significant opportunity to enhance the growth of Thor and advance the company’s strategic focus on growing its recreational vehicle business,” in a press release Friday.
In particular, Jayco is reported to bring complementary products in travel trailers, folding camping trailers, higher-end diesel Class A motorhomes and larger Class C motorhomes, the release stated.
Jayco will be a wholly owned subsidiary of Thor, and the existing senior management team will continue to lead the business.
“We are thrilled to welcome Jayco to the Thor portfolio of companies,” said Thor President and CEO Bob Martin in a statement. “Jayco is a company that I have admired for more than 20 years while working in the industry and living in the community very close to their operations. We value the long-standing success of Jayco and are committed to providing the Bontrager family, and their team of dedicated employees, the resources they need to continue the success they have built at Jayco over the past half century.”
“This investment also illustrates our confidence in the future of the RV industry as younger consumers enter and expand the market over the coming decades,” he added. “Both existing and new RVers will see the benefits of our subsidiaries’ efforts as they lead in innovation with new technology and features in our products that make RVs easier to use and better connected.”
Wilbur Bontrager, chairman of the board of Jayco, said his family is very proud of the legacy the company has established over the past 48 years.
“As a family-run and owned business,” Bontrager said, “we view today’s transaction as an opportunity to continue growing our business while joining an even larger family.”
According to the release, Thor’s purchase of Jayco Corp. will include all of its subsidiaries, including Jayco, Starcraft RV, Highland Ridge and Entegra Coach.
Jayco Corp. and its subsidiaries currently operates in 31 facilities which include 17 production lines covering 2.2 million square feet of production space located primarily in Northern Indiana with additional facilities in Twin Falls, Idaho. The company generated income before tax of approximately $70 million on revenue of approximately $1.5 billion in calendar year 2015.
The purchase, which was funded through existing cash balances as well as approximately $360 million in borrowings from an asset-based revolving line of credit, will be subject to post-closing adjustments.