Thor Industries’ subsidiary, Airxcel Inc., acquired Elkhart, Indiana-based Elkhart Composites, Inc.
Elkhart Composites develops and sells 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.
Bob Martin, Thor president and CEO, said lauan wood is sourced from tropical hardwood forests which are continually 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,” Martin said. “Our ability to quality-control lauan product is severely limited. Elkboard, on the other hand, is sustainable, and is fabricated locally.”
Martin said the product has strict quality controls which allows a level of consistency not available with lauan-based product. Elkboard, Martin added, is an innovative and superior product already utilized in many of the Thor RV brand offerings.
“Its current use in sidewalls is only the beginning for this product,” Martin said. “With additional research and development investment into the Elkboard product, we expect it can be utilized as a solution in several other RV applications.”
Martin also called the company’s growth potential “exponential,” and said Thor companies have been purchasing all product produced.
“But that number has only supported a fraction of the RVs we produce,” Martin said. “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.”
Martin also said this was the first opportunity for Thor to build on its September acquisition of Airxcel and the strategy driving that acquisition.
Jeff Rutherford, Airxcel president and CEO, commended John Petrofsky and his product, Elkboard, as presenting a once-in-a-lifetime opportunity for Airxcel.
“We are excited to have John join our team,” Rutherford said, “and look forward to growing this great business in the years to come.”
Rutherford also noted that the company, founded and operated by John Petrofsky, is different due to its new footprint in the industry.
“This acquisition speaks to our confidence in Elkboard and its potential in the industry,” Rutherford said. “There are a number of great opportunities in terms of additional applications of the current product and a number of future products that are in research and development right now. Elkboard is a great fit with Airxcel.”
Rutherford noted Elkboard’s production efficiency, and said there is minimal-to-no scrap.
Petrofsky said the demand for Elkboard had begun to outpace his ability to produce it.
“I began looking for the right partner to assist in expanding the production and utilization of Elkboard,” Petrofsky said. “While I had numerous suitors, Thor and Airxcel were the most natural fit.”
He cited the established companies’ sustainable technologies and products, along with Thor’s focus on innovation as part of his decision.
“Thor’s leadership has believed in the potential of Elkboard product since our first introduction,” Petrofsky said. “I look forward to growing Elkhart Composites, Inc.’s product offerings, production volume and applications with Airxcel.”
