FRANKFURT (Reuters) – U.S.-based recreational vehicle maker Thor Industries <THO.N> has agreed to buy German family-owned peer Erwin Hymer Group in a deal valuing the company at 2.1 billion euros (1.86 billion pounds) including debt, Thor said on Tuesday.
The deal, which was flagged by Reuters last week, will see Thor pay the bulk of the price in cash. It will also issue 2.3 million of its shares to the Hymer family.
Thor shares closed at $97.55 on Monday.
Thor said it expected the transaction to be accretive to earnings in the first year, and Chief Executive Bob Martin stressed that the investment case was not a cost-cutting story.
“No job cuts are planned,” he told Reuters, adding that the companies were targeting synergies by sharing their best practices in areas ranging from product design to production.
(Reporting by Arno Schuetze; Editing by Maria Sheahan)