The investment community apparently loves the Thor Industries Inc. plan to acquire rapidly growing towables manufacturer Keystone RV Co., as indicated by the fact Thor’s stock climbed $2.29 a share, or 7%, today (Oct. 31) to close at $35.
Thor’s stock price gain occurred on a day when the Dow Jones Industrial Average declined 47 points, or 0.5%, although the Nasdaq composite gained 23 points, or 1.4%, today.
Thor announced at the opening of New York Stock Exchange trading today that it intends to buy the closely-held Keystone for $145 million in cash and Thor common stock.
The Thor/Keystone deal is expected to close by Nov. 9.
The announcement of the Thor/Keystone deal apparently helped other RV company stocks, despite the fact the government announced today that the economy actually shrunk slightly during the third quarter, a possible sign of a recession.
The other RV companies posting strong gains today were Skyline, which climbed $1.42 a share, or 6%, to close at $25.40, and Monaco, which gained $1.40, or 8.5%, to close at $17.90.
Bus conversion motorhome and utility trailer manufacturer Featherlite also saw its stock price gain 9 cents, or 9%, today, to close at $1.10 a share.