Thor Exits Bus Market; Selling Interests to ASV
Thor Industries Inc. today (July 31) announced that it has entered into a definitive agreement to sell its bus business to Allied Specialty Vehicles Inc. (ASV) for $100 million in cash, subject to closing adjustments. The sale is subject to customary closing conditions and is expected to be completed by Nov. 1.
“Although the bus business has been a valuable part of Thor, this transaction allows us to focus on maintaining and growing our leadership position in our core recreation vehicle business,” said Peter B. Orthwein, chairman of Elkhart, Ind.-based Thor. “From an investor perspective, divesting the bus business will simplify our overall operations and solidify Thor’s position as the leading company in the RV industry which is recovering strongly. Pursuing the strategic development of our RV business enables us to drive growth in sales and earnings, ultimately delivering improved value for our shareholders.”
Thor’s bus business includes Champion Bus Inc., General Coach America Inc., Goshen Coach Inc., El Dorado National California Inc., and El Dorado National Kansas Inc., which combined represent one of the largest producers of transit and shuttle buses in North America with bus segment sales of approximately $450 million for the fiscal year ended July 31. In addition to its bus interests, ASV is parent to Fleetwood RV Inc. and recently acquired the RV assets of Navistar Inc., including the Monaco Coach and Holiday Rambler brands.
“We are excited to add the Thor bus business to our diverse line up of specialty vehicles,” said Peter Guile, president and CEO of Allied Specialty Vehicles. “We view the opportunity to expand our business into the transit and shuttle bus markets as a key initiative in broadening our markets and providing products that meet the needs of our dealers and end consumers. We are eager to welcome these new bus brands to the ASV family.”
Thor will continue to own and operate the bus business until the closing date of the sale. As a result of the decision to pursue a divestment of the bus business, Thor will report the financial results of the bus business as discontinued operations in its upcoming annual report filed on Form 10-K with the Securities and Exchange Commission (SEC), which the company expects to file in late September. Thor does not anticipate any impairment to goodwill or intangible assets of the bus business as a result of the sale.
Thor expects to report preliminary sales for its fiscal fourth quarter and full year ended July 31 on Aug. 5.