On Monday, Monomoy Capital Partners announced it entered into an agreement to acquire Thetford Corp from the Dyson-Kissner-Moran Corp.
Monomoy, a middle-market private investment firm founded in 2005, is focused primarily on equity and debt investments in North America in the industrial manufacturing, distribution and consumer sectors. The firm manages more than $2.7 billion in capital.
Justin Hillenbrand, co-CEO of Monomoy, said the investment banking firm Greenhill & Co., LLC, advised Monomoy of Thetford’s presence on the market. The acquisition interested Monomoy because of Thetford’s strong market share as an OEM supplier.
“Thetford is a dominate player in the two biggest RV markets; that alone piqued our interest,” Hillenbrand said. “They also have a strong management team led by Stéphane Cordeille. When we met and heard his vision, it really resonated with us.”
In 2020, Monomoy invested in its first RV industry business in aluminum extrusion supplier Astro Shapes. Hillenbrand said Monomoy has looked at investing in the RV and marine sectors because of the sector’s recent growth.
“Thetford is a business we are quite excited about, and our second investment in a different part of the RV space,” Hillenbrand said. “We are somewhat bullish on the space and are excited for its prospects.”
Hillenbrand said in discussions with Thetford executives, both teams recognized Thetford has room to improve and grow. Thetford’s business prospects caused Monomoy to evaluate the acquisition as a good investment, Hillenbrand said.
One growth opportunity Monomoy sees is the aftermarket business. Thetford has not focused on the aftermarket sector, Hillenbrand said.
“When looking at the sheer volume of the past two years with Covid, there is a big increase in units that will need aftermarket service to stay on the road,” Hillenbrand said. “Certainly, we are going to focus on product development and make sure we are in the cutting edge for sanitation and refrigeration.”
Hillenbrand noted Monomoy intends to grow Thetford organically and through acquisitions. He said there could be acquisitions in North America and Europe to strengthen Thetford’s core segments: sanitation, refrigeration and cooktops.
“Acquisitions in adjacent spaces are being entertained,” Hillenbrand said.
Thetford employs around 700 individuals in the U.S., and more than 1,900 worldwide. Hillenbrand noted there are significant differences in managing a global company than purely domestic, citing specifically supply chain issues.
“The supply chain gets infinitely more complex with a global business, with sourcing and manufacturing all over the world,” Hillenbrand said. “I, along with probably every other business, are experiencing challenges in the supply chain.”
