ELKHART, Ind., April 17, 2014 /PRNewswire/ -- Thor Industries, Inc. (NYSE:THO) today announced that it has entered into an agreement to acquire the outstanding capital stock of recreational vehicle (RV) manufacturer K-Z, Inc. (K-Z) in a transaction closing effective May 1, 2014. The purchase price, which will be paid in cash, is approximately $53.4 million, subject to adjustment.
"We are pleased to welcome K-Z to the Thor family. With a strong focus on value, service and quality, K-Z brings an exceptional way of doing business that really stands apart in the RV industry," said Bob Martin, Thor President and Chief Executive Officer. "With an iconic and long-standing brand, K-Z has built a successful business over the past 40 years serving a diversified distribution network of more than 200 dealers that are strong business partners. At Thor, we recognize the success of K-Z and want to see that continue as we support the management team in the next phase of their growth."
Founded in 1972, Shipshewana, Indiana-based K-Z is known for its innovative, high-quality travel trailers, fifth wheels and toy haulers. With strong brands such as Sportsmen, Spree and Durango, K-Z produces a comprehensive selection of travel trailers, fifth wheels and toy haulers with retail price points as low as $10,000 for entry-level products. The company produces its RV's at a complex consisting of 396,000 square feet of office and production space spread among six primary facilities operated by a team of approximately 320 employees. K-Z generated sales of nearly $150 million for its fiscal year ended December 31, 2013, and Thor expects the acquisition to be accretive to earnings.
"Becoming a part of Thor allows us to continue to operate K-Z with the core values and relationships that have made us successful since our founding," said Daryl Zook, founder and Chief Executive Officer of K-Z. "We understand the importance of partnering with a local Company that has strong roots in the RV industry and in our communities of northern Indiana. We share a strong commitment to product quality and excellent customer and dealer relationships that make Thor an ideal partner for K-Z."About Thor Industries, Inc. Thor is the sole owner of operating subsidiaries that, combined, represent one of the world's largest manufacturers of recreational vehicles.