Thor Agrees to Acquire Bus Manufacturer
7 January 1998Thor Agrees to Acquire Bus Manufacturer; Acquisition Expected to Add to Earnings; Thor Sells Henschen for Cash
JACKSON CENTER, Ohio, Jan. 7 -- Thor Industries, Inc. announced today that it has agreed to acquire the operations of Champion Motor Coach, Inc., a subsidiary of Champion Enterprises Inc. for approximately $11 million cash. The acquisition is subject to government approvals and other usual conditions. Champion Motor Coach, Inc. of Imlay City, Mich. is the third-largest manufacturer of small and mid-size buses and has sales of approximately $60 million. "Acquisition of Champion Motor Coach, which is profitable, will give Thor over $200 million annually in Bus sales and is expected to add to Thor earnings this fiscal year. The purchase of Champion Motor Coach represents a major expansion in Bus, our fastest growth segment. The plan is for Champion Motor Coach to be managed by its current management team as a separate subsidiary of Thor," said Wade F. B. Thompson, Thor Chairman. In a separate transaction, Thor announced that it sold its Henschen Industrial axle manufacturing operation, which has sales of $6 million, to QDS Components Inc., Winchester, Tenn. for about $3.5 million cash. The sale will result in a one-time gain after tax of about $933,000 or 11 cents per share. "These important transactions demonstrate Thor's continuing emphasis on its two core businesses, Buses and RVs. Henschen was a minor part of Thor," Mr. Thompson added. Thor is the second-largest manufacturer of recreational vehicles and the largest builder of mid-size buses. SOURCE Thor Industries, Inc.