Thor Industries, Inc. today (Jan. 21) provided an update on its pending acquisition of the Erwin Hymer Group (EHG). According to a press release, Thor and the sellers are finalizing discussions to exclude EHG’s North American operations from Thor’s purchase of EHG.
Thor and EHG are currently negotiating appropriate revisions to the terms of the stock purchase agreement including adjustments to the purchase price and assumed liabilities as a consequence of the exclusion of EHG’s North American operations.
Upon completion of the current negotiations, Thor will provide an update regarding the changes to the financial terms of the agreement resulting from the exclusion of the EHG’s North American operations from the transaction.
The revised terms are expected to include, among other things, both a reduction in the purchase price and a reduction in the obligations the company would have otherwise assumed under the terms of the original stock purchase agreement, as well as a reduction in the acquisition financing debt the Company has syndicated to fund the purchase.
The equity consideration component of the purchase price is not anticipated to change and the negotiated adjustments are expected to be made within the terms of the Thor’s committed acquisition debt financing agreements.
The combination of Thor and EHG will create the world’s largest RV manufacturer, with leading positions in both North America and Europe. EHG’s European operations, which represent the vast majority and core of EHG’s operations, were and are the driving strategic rationale for the acquisition. The acquisition of EHG will provide attractive growth opportunities for the Company, both in the near and long term, through EHG’s access to the growing European RV market.
Thor noted that it has received all requisite regulatory approvals. Thor expects that its purchase of EHG will be completed within the Company’s fiscal third quarter.