Thor Industries’ $750 million purchase of Airxcel on Wednesday brought supply chain strength, the company said. One analyst said the deal would live up to that promise.
Thompson Research Group founding partner and CEO Kathryn Thompson said in a note to clients the acquisition will strengthen the supply chain by enhancing Airxcel’s operating ability and strengthening a Thor supplier.
“Additional benefits to (Thor) include additional revenue streams with aftermarket sales and additional growth opportunities by expanding the supply business in both North America and Europe,” Thompson said.
In particular, Thompson noted the vertical integration the acquisition provides.
“TRG wrote about (Thor’s) expanding footprint with the acquisition of Tiffin adding facilities in (Alabama and Mississippi) and gaining access to a larger labor pool in a time of labor shortages,” Thompson said. “The Airxcel acquisition furthers this trend by adding additional manufacturing locations and access to a larger labor pool.”
TRG said the deal had a positive outlook.
“Overall, we view this acquisition as a positive given it is margin accretive and helps strengthen the supply chain as the industry works through the unique environment,” Thompson said.
