ELKHART, Ind., Dec. 7, 2021 /PRNewswire/ -- THOR Industries,
Inc. (NYSE:THO) today announced the acquisition of Elkhart, Indiana-based Elkhart Composites,
Inc. by THOR's Airxcel, Inc. subsidiary. Elkhart Composites
is engaged in the development and sale of a proprietary sustainable
foamed polypropylene-based composite material marketed and sold
under the "Elkboard" brand name. Lightweight, rigid, and durable,
Elkboard is used in the RV industry for sidewalls, helping to
alleviate the industry's dependence on traditional lauan-based
sidewalls. Unlike traditional lauan-based sidewalls, Elkboard is a
sustainable solution and is not susceptible to rot or
delamination.
"We are excited about this acquisition for so many different
reasons." said Bob Martin, THOR
President and CEO. "First, Elkboard is a far more sustainable
solution than traditional lauan-based sidewalls. For decades, the
RV industry has sourced lauan wood from tropical hardwood forests
which continue to be over-harvested. As the recent supply-chain
constraints have demonstrated, sourcing such materials from the
other side of the world can no longer be taken for granted and our
ability to quality-control lauan product is severely limited.
Elkboard, on the other hand, is sustainable, and is fabricated
locally. Strict quality oversight allows a great deal of
consistency we cannot find in lauan-based product. Second, Elkboard
is an innovative and superior product already utilized in many of
our RV offerings. Its current use in sidewalls is only the
beginning for this product. With additional R&D investment into
the Elkboard product, we expect it can be utilized as a solution in
several other RV applications. Third, the growth potential of
Elkboard is exponential. Our companies have been purchasing 100% of
the Elkboard produced but that number has only supported a fraction
of the RVs we produce. THOR and Airxcel have already committed to
making capital investments into Elkboard to expand its production
capacity to a multiple of its current production capacity. Fourth,
this is the first opportunity for us to continue to build on our
recent Airxcel acquisition and the strategy that drove that
acquisition."
"John Petrofsky and his Elkboard
product presented a once-in-a-lifetime opportunity for Airxcel to
enter the ground floor of a new and exciting business." added
Jeff Rutherford, President and CEO
of THOR subsidiary Airxcel, Inc. "We are excited to have John join
our team and look forward to growing this great business in the
years to come."
John Petrofsky, Elkhart
Composites' President and CEO, commented, "As the demand for the
Elkboard product began to outpace my ability to produce it, I began
looking for the right partner to assist in expanding the production
and utilization of Elkboard. While I had numerous suitors, THOR and
Airxcel were the most natural fit. THOR's embrace of sustainable
technologies and products combined with its focus on innovation
made it the right choice for the company. THOR's leadership
has believed in the potential of Elkboard product since our first
introduction, and I look forward to growing Elkhart Composites,
Inc.'s product offerings, production volume, and applications with
Airxcel."
About THOR Industries, Inc.
THOR Industries is the sole owner of operating subsidiaries
that, combined, represent the world's largest manufacturer of
recreational vehicles. For more information on the Company and its
products, please go to www.thorindustries.com.
Forward-Looking Statements
This release includes certain statements that are
"forward-looking" statements within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995, Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. These forward-looking
statements are made based on management's current expectations and
beliefs regarding future and anticipated developments and their
effects upon THOR, and inherently involve uncertainties and risks.
These forward-looking statements are not a guarantee of future
performance. We cannot assure you that actual results will not
differ materially from our expectations. Factors which could cause
materially different results include, among others: the extent and
impact from the continuation of the COVID-19 pandemic, along with
the responses to contain the spread of the virus, or its variants,
by various governmental entities or other actors, which may have
negative effects on retail customer demand, our independent
dealers, our supply chain, our labor force, our production or other
aspects of our business; the ability to ramp production up or down
quickly in response to rapid changes in demand while also managing
costs and market share; the effect of raw material and commodity
price fluctuations, and/or raw material, commodity or chassis
supply constraints; the dependence on a small group of suppliers
for certain components used in production; the level and magnitude
of warranty and recall claims incurred; the ability of our
suppliers to financially support any defects in their products;
legislative, regulatory and tax law and/or policy developments
including their potential impact on our dealers and their retail
customers or on our suppliers; the costs of compliance with
governmental regulation; public perception of and the costs related
to environmental, social and governance matters; legal and
compliance issues including those that may arise in conjunction
with recently completed transactions; lower consumer confidence and
the level of discretionary consumer spending; interest rate
fluctuations and their potential impact on the general economy and,
specifically, on our dealers and consumers; the impact of exchange
rate fluctuations; restrictive lending practices which could
negatively impact our independent dealers and/or retail consumers;
management changes; the success of new and existing products and
services; the ability to maintain strong brands and develop
innovative products that meet consumer demands; the ability to
efficiently utilize existing production facilities; changes in
consumer preferences; the risks associated with acquisitions,
including: the pace and successful closing of an acquisition, the
integration and financial impact thereof, the level of achievement
of anticipated operating synergies from acquisitions, the potential
for unknown or understated liabilities related to acquisitions, the
potential loss of existing customers of acquisitions and our
ability to retain key management personnel of acquired companies; a
shortage of necessary personnel for production and increasing labor
costs to attract production personnel in times of high demand; the
loss or reduction of sales to key dealers; disruption of the
delivery of units to dealers; increasing costs for freight and
transportation; asset impairment charges; competition; the impact
of potential losses under repurchase agreements; the potential
impact of the strength of the U.S. dollar on international demand
for products priced in U.S. dollars; general economic, market and
political conditions in the various countries in which our products
are produced and/or sold; the impact of changing emissions and
other related climate change regulations in the various
jurisdictions in which our products are produced, used and/or sold;
changes to our investment and capital allocation strategies or
other facets of our strategic plan; and changes in market liquidity
conditions, credit ratings and other factors that may impact our
access to future funding and the cost of debt.
These and other risks and uncertainties are discussed more fully
in Item 1A of our Annual Report on Form 10-K for the year ended
July 31, 2021.
We disclaim any obligation or undertaking to disseminate any
updates or revisions to any forward-looking statements contained in
this release or to reflect any change in our expectations after the
date hereof or any change in events, conditions or circumstances on
which any statement is based,
except as required by law.
Contact
Mark Trinske,
Vice President of Investor Relations
mtrinske@thorindustries.com
(574) 970-7912
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SOURCE THOR Industries, Inc.