Thor Industries Acquires Jayco For $576 Mln In Cash

(RTTNews) - Thor Industries, Inc. (THO) Friday announced the acquisition of Jayco, Corp. for approximately $576 million in cash. The purchase includes Jayco, Starcraft RV, Highland Ridge and Entegra Coach Subsidiaries. Transaction is expected to be accretive to earnings within the first fiscal year.

Thor said the transaction would be a positive, strategic fit for both companies. Upon closing of the transaction, Jayco will be a wholly owned subsidiary of Thor, and the existing senior management team will continue. Thor will operate Jayco as an independent company.

The purchase price was funded through existing cash balances as well as approximately $360 million in borrowings from an asset-based revolving line of credit arranged through its lenders and expects to repay it within three years of closing.

In 2015, Jayco has generated income before tax of approximately $70 million on revenue of approximately $1.5 billion.