On Tuesday, Thor Industries announced that it had entered into an agreement to acquire Erwin Hymer Group potentially by year’s end – a deal valued at $2.4 billion. In an interview with RV PRO, Thor CEO Bob Martin alluded to all the growth potential this would allow for both companies both in Europe and in the U.S.
Thor had spoken with many RV manufacturers, but Hymer made the most sense as Thor’s inaugural entry point into Europe’s RV market.
“We do very well when we buy the market leader,” said Martin. “Hymer has incredible facilities and a very strong management team. That’s some of the key criteria we look for. … And there are other opportunities in Europe. It hasn’t had the consolidation that the U.S. has, so we have more opportunities for organic growth over there through acquisition.”
Soon after the announcement, Thor’s stock went up by 5 percent. One of the biggest selling points is to benefit from Hymer’s innovative ways.
“A lot of the way they build units – there’s a higher level of technology,” Martin said, also mentioning how in the units themselves he saw innovations like zone lighting. “They’re just looking at things differently (in ways) that can help our company here as well. … Autonomous driving,” he said for instance, “(Hymer) already has one through Roadtrek. So, there are several things, as we work together – we’ll just see how things progress naturally. Overall, I see opportunities to help them and for them to help us.”
But don’t expect to see Thor products in Europe anytime soon.
“U.S.-based products simply are too big for Europe,” he said. “That’s why you don’t see many U.S. manufacturers shipping to Europe.”
Some RV manufacturers may ship a small number, he said, but the European market has many weight constraints and the narrowness of road infrastructures would create a large hassle to get around. With so many switchbacks in Europe, getting around in a Class A doesn’t seem very fun.
“(In the U.S.), the F-150 is the No. 1-selling truck,” Martin said, “but Europe doesn’t have them. Everything is smaller. That’s why the strategy for us to buy an existing company that was already building the right products for the market really intrigued us.”
Martin was truly impressed with the minivan-sized product by Hymer that has a portable kitchen that can come out, allowing for more seats to go in to become a minivan with a pop-top.
“It’s a camper but you could also use it as your daily driving minivan,” he said. “We see a lot of those ideas that could be opportunities for us in the U.S. whether it comes over as Hymer or we develop through one of our companies here.”
Serious talks about a deal began earlier in 2018, but Thor’s relationship with Hymer goes back to when Martin was still at Keystone RV. Thor managers would tour Hymer’s facilities and vice versa over at Keystone around 2008, Martin said.
“That’s when I first got to know the Hymer group. But then serious discussions,” about the acquisition, “began in January at the Tampa show.”
He then traveled to Germany in May and flew back and forth six times until the agreement was signed.
“So,” Martin said, laughing, “I racked up the Delta miles this year.”
“We’re looking forward to opening the next chapter of our company’s history with Thor Industries, and are convinced that we will mutually benefit from each other,” Martin Brandt, CEO of Erwin Hymer Group, stated in a press release yesterday, which also stated Thor and Hymer don’t anticipate any changes in employee levels.
Follow RV PRO on Facebook and Twitter to keep up to date on further developments.