Thor Announces Joint Venture With Tourism Holdings

Thor Industries, Inc. THO, the leading manufacturer of recreational vehicles (RVs), announced the creation of a 50/50 joint venture with New Zealand-based Tourism Holdings, Ltd. The company expects that the collaboration with the world's largest RV rental and sales operator will provide maximum benefits of digital connectivity in the fast-growing international marketplace.

Notably, Thor strives at raising its market share through investments in innovative products. Given its robust financial position and advantages that it obtained from U.S. tax reform legislation, the company is likely to invest in new exciting areas. Also, the company constantly evaluates investment opportunities, aiming at lowering debt and returning more to investors. The new JV is in sync with its strategic plans.

Thor will initially invest around $50 million in the joint venture called TH2. Subject to the fulfillment of certain customary closing conditions, the JV is anticipated to close by the end of February 2018.

It is estimated that TH2 will considerably increase the enjoyment and safety of RV-users through digital connectivity. This will perk up every aspect of RV with functions like trip planning and booking, roadside assistance, remote systems monitoring, campsite rental and peer-to-peer RV. Manufacturers, rental operators and RV dealers, who utilize TH2's services and products, will experience enhanced efficiencies with respect to product pricing, fleet management and service engagement.

Over the past three months, shares of Thor have underperformed the industry it belongs to. Over this time period, shares of the company have risen 27.2%, whereas the industry grew 28.7%.

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