Shelby County-based Thor Industries said it acquired Heartland Recreational Vehicles for $100 million and 4.3 million shares, subject to changes in stock price.
Based in Elkhart, Ind., Heartland is a private maker of towable recreation vehicles. The acquisition puts Thor in control of the third-largest maker of fifth wheels and the sixth-largest maker of travel trailers in the United States.
“Good move,” said Bret Jordan, a research analyst with Avondale Partners.
Craig Kennison, an analyst with Robert W. Baird Co., told clients in a note Friday, “We like the deal and believe shares discount a weak economic recovery — but we remain cautious on RV fundamentals as the economic recovery stalls.”
Kennison, which has an “outperform” rating on Thor’s stock, said the acquisition would increase Thor’s total share of the travel trailers and fifth wheel market to 40.2 percent.
Richard Riegel, Thor group president, said the acquisition is not about becoming bigger.
“It’s about efficiency, not just being the biggest at what we do, but being the best at what we do,” Riegel said. Heartland has more than 1,000 employees in Indiana and should continue to operate as is, Riegel said. Heartland executives will remain with the company and are now “significant” shareholders in Thor, he said.
Based in Jackson Center with more than 250 employees, Thor is the world’s largest manufacturer of RVs and a major builder of commercial buses and ambulances.