Thor Industries anticipates closing its pending acquisition of the Erwin Hymer Group on Feb. 1 with an expected price reduction of 170 million euros ($194.7 million). Originally the price was to be 2.1 billion euros.
The changes are to the financial terms of the stock purchase agreement with EHG resulting from the exclusion of its North American operations from the transaction. Thor and the sellers continue to work to finalize discussions to exclude EHG’s North American operations from Thor’s purchase of EHG, including appropriate revisions to the terms of the stock purchase agreement.
The size of Thor’s previously syndicated term loan facility will be reduced by an equal amount. Additionally, it is expected that there will be a reduction of 180 million euros ($206.1 million) in obligations of EHG that Thor would have otherwise assumed under the terms of the original stock purchase agreement.
The equity consideration component of the purchase price is not anticipated to change.
After the closing, EHG would continue to be obligated on its existing contractual obligations related to the North American businesses, but otherwise will not assume any obligations or liabilities of those businesses under the terms of the stock purchase agreement. The negotiated adjustments to the stock purchase agreement are expected to be made within the terms of the company’s committed acquisition debt financing agreements.
