Thor Industries announced Dec. 21 it bought Tiffin Motorhomes and related companies for $300 million.
President and CEO Bob Martin said he was contacted by Tiffin CEO Robert “Bob” Tiffin about joining the company’s brand family. The partnership was natural fit for the two businesses, Martin stated, leading to the acquisition.
Tiffin management will lead the Tiffin Group as a wholly-owned subsidiary of Thor. The change began Dec. 18. The company employs more than 2,100 workers.
“I have known of and respected Bob Tiffin and the Tiffin brand for many years,” Martin stated. “Bob and his family have built Tiffin into an industry leader, well known for its Class A motorhomes, quality workmanship and outstanding customer service. I was therefore thrilled to be contacted by Bob when he wanted to talk about joining the Thor family of companies.
“The Tiffin brand is synonymous with quality and customer satisfaction in our industry,” he stated. “For many decades, Tiffin has set the standard for the luxury Class A market. Its strong presence in the luxury Class A segment makes it very complimentary to Thor’s current North American portfolio.”
Although well-established in the luxury Type A space, Martin stated, Tiffin is relatively new to towables and Type C markets. The company has no travel trailer or Type B segment offerings, he stated.
“Growing the great Tiffin brand name into these segments will be well-received by dealers and consumers alike,” Martin stated. “In Tiffin, we really acquired a company that was incredibly well-established, but at the same time, had very large opportunities for growth. It is a unique scenario that offers great upside to us. As we move into a new calendar year with strong momentum of industry growth and a growing and diverse end-consumer base, we are very confident in the future of Thor. It is with this confidence that we are excited to add Tiffin to our North American portfolio and look forward to realizing the benefits that such a well-established company will add to Thor for years to come.”
Bob Tiffin noted the company’s need for a partner who could sustain and grow the family-owned business. Thor’s purchase includes Vanleigh RV, which makes fifth wheels, and other associated operating entities.
“The future of this group of companies is critical not just to the Tiffin family, but to our employees, our dealers and our incredibly loyal customers,” he stated. “… I have known of Bob Martin for many years and have always respected Thor’s business model and how effectively they have added new businesses to their portfolio, while maintaining the independence and legacy of each new addition. Thor’s strategy to empower its companies to compete with one another and to avoid a centralized operational strategy for its different companies was very important to us. The dealers and customers who love the Tiffin brand will continue to receive the high-quality products they have grown to expect. And I am not going anywhere, as I will continue to operate the Tiffin companies as I have, with no timeline for change.
“My sons, Van and Tim, as well as my grandson, Leigh, will also continue to have major roles in the Tiffin business,” Tiffin stated. “Instead of feeling like I sold a business, I feel like we have aligned with a great company that will enable us to take Tiffin to a new level while maintaining the Tiffin culture and brand integrity that has set us apart from our competitors for years.”
Thor uses a decentralized business model, which allows its brands to compete with one another and manage their own operations, the company stated, while benefitting from Thor’s financial strength and growth resources. Thor noted its focus on acquiring businesses with strong management teams, quality operations, excellent products and a solid dealer network.
“Tiffin is firmly established as a top performer in the industry,” Thor’s Senior VP and Chief Financial Officer Colleen Zuhl stated. “We see great opportunity, working with the Tiffin management team, to realize significant growth in its value. While Tiffin’s motorized gross profit margin and operating margin have, in recent years, been lower than our North American motorized gross profit margins, our experience with prior acquisitions leaves us confident that, in a relatively short period of time, the Tiffin Group margins will become more reflective of our North American motorized segment for similar products. Thor’s ability to assist the Tiffin Group in developing high quality products at competitive pricing in the market creates a great opportunity for growth in the future. Exclusive of the effects of purchase price accounting and transaction-related costs, Tiffin will be accretive to our fiscal 2021 earnings.”
Thor announced plans to hold a virtual Investor Update Event in its fiscal year’s second half. The event will provide investors with a comprehensive update on the company’s progress and outlook regarding 2025 goals.
“The Tiffin Group operates in Alabama and Mississippi with more of a vertically integrated business model than is typical for our industry,” Martin stated. “The geographic separation from Elkhart offers numerous strategic opportunities including an expanded and talented workforce and a host of potential new suppliers.
“We are excited to be a part of the future of this great company and see many opportunities to drive growth of both its top and bottom lines,” he stated.
