Thor Buys Jayco

[glsimms]

Originally Posted by Grumpy

In the last few years JAYCO spent quite a bit of cash, bought the assets of TRAVEL SUPREME ( now the ENTEGRA and new DESIGNER). Had a massive expansion of the MH plant and bought OPEN RANGE as well as the company who did their full body paint. It might have been a situation where they needed an influx of cash to keep things at a good level and possibly make more improvements.

Good points Grumpy. As a matter of fact, the wife and I are looking at an Open Range TT because of the nice floor plan and like Jayco, also has the 2 year warranty.

[schrederman]

We're still looking at new Jaycos and just this morning, finally decided to go ahead and buy a new TT. I have read all the posts in this thread, and can't quite figure out why everyone thinks this is such a bad thing... or why it would be good for anyone other than the family which is receiving a big payday. Only time will tell. I think we'll continue looking at the White Hawk while looking at a couple of others. Winnebago is awfully proud of their Ultra Lite (formerly Sunnybrook) TTs... We'll see... Wow, this brought about a lot of negativity, which surprised me...

[Grumpy]

Originally Posted by schrederman

. Wow, this brought about a lot of negativity, which surprised me...

Some people don't like change.

[Crabman]

It is what it is, we can only hope the concerns mentioned are unfounded. Time to move forward............

[Atlee]

Doubt that happens all that much. While, Jayco will run itself as an independent company, rest assured of 2 things. Jayco will not do any expensive R&D without Thor's management giving their OK, and if the wholly owned subsidiary, Jayco, doesn't continue to throw off the same kind of cash it does now, Senior Thor management will be all over that. Thor will start making changes.

Originally Posted by Arniesports60

hopefully this part of the Thor buy statement will hold true -

Thor will operate Jayco as an independent company as it does with its other subsidiaries, the release explained, adding that it will be “business as usual” at Jayco as their existing, experienced management team will continue to manage their operations and compete effectively in the RV market, just as they and their family have done for the past 48 years.

[Atlee]

Isn't Winniebago independent? That's a fairly large comprehensive RV company.

Originally Posted by roving legrands

Ok so who owns the other 17% mobile suite???

[Atlee]

The new financing will come with large strings. The parent isn't going to throw cash at Jayco. Thor will expect a pretty decent ROI fm Jayco. If Thor doesn't get that ROI, Thor will become directly involved in Jayco business.

Originally Posted by Grumpy

I don't think you will see any negatives coming from it, in fact things may get better since their finances will be better.

[edatlanta]

Originally Posted by McGarrett50

Thanks Crabman for consolidating the topic. Grumpy, excellent point on Airstream's success since the Thor acquisition.

I posed the question on the Precept owners forum wondering if, IN TIME, Thor may influence Jayco to discontinue their gas Class A line since the Jayco brand is better known for it's C Class, trailers & Entegra brand. Coupled with Thor's other brands that have a wide Class A portfolio, in a consolidated world, does do they really need the Precepts and Alantes?

Now, as a very satisfied Precept owner, I would not like to see this, however......

Lastly, this is a sign of the times. Many family owned businesses on their second or third generations, are looking for an exit strategy (and or additional capital & resources to stay competitive) and with crazy cheap money available (credit lines and private equity), while disappointing, this is not too surprising.

IMHO

I think it is more that just additional capital & resources. The first generation was the entrepreneur that had the vision and the drive to start the company and worked his/her butt off to make it a success. The second generation most likely grew up working weekends and summers helping mom/dad and living with the fact that the company was another major part of their family. And the company came first...period. The third generation didn't experience the same thing that the second. By the time the third generation came along the company was well established and they didn't have to work nights and weekends and summers. They basically had zero tie to the company. It was just "always there". So when it was their turn to take over they just didn't have the interest as the first and second generation. I read somewhere a few years back that companies that survived family ownership through the third generation was less than 3%.

[norty1]

Meanwhile........I'm going camping!

[TWP723]

Originally Posted by norty1

Meanwhile........I'm going camping!

I'm with ya!

[JaycoBud]

Jayco is expected to operate as a subsidiary of Thor, with the existing management continuing to lead the business.

Some people question if they will continue to build pop up campers.

[Grumpy]

Originally Posted by JaycoBud

Some people question if they will continue to build pop up campers.

If you read the statement from THOR's Pres.they were glad to have pop-ups added under their umbrella.

Here's the quote:

The transaction is a positive, strategic fit for both companies. Jayco brings a lineup of innovative products into the Thor family, across multiple product categories. In particular, Jayco’s travel trailers, camping trailers, high-end diesel motorhomes and super C motorhomes will enhance and complement the existing Thor family of products.

[eng45ine]

I walked into a 2017 Jayco pop up at the dealer last week, it did not appear to have the fit and finish that the older pop ups have. It remains to be seen what Jayco will offer over the next few years, I am so glad that we purchased our pop up when we did.

[troutslayer]

Originally Posted by Grumpy

If you read the statement from THOR's Pres.they were glad to have pop-ups added under their umbrella.

Here's the quote:

The transaction is a positive, strategic fit for both companies. Jayco brings a lineup of innovative products into the Thor family, across multiple product categories. In particular, Jayco’s travel trailers, camping trailers, high-end diesel motorhomes and super C motorhomes will enhance and complement the existing Thor family of products.

Grumpy, I applaud your optimism. Company take overs are kinda like all those promises during presidential elections...they don't really mean much .

[norty1]

What good does pessimism serve if you are already a owner?

[Rustic Eagle]

At the end of the day only time will tell if this was a good move for consumers of future Jayco products.

Bob

[McGarrett50]

Regarding my suggestion that Jayco gas As might be phased out in time....

No mention of their Gas As in this quote from the press release:

The transaction is a positive, strategic fit for both companies. Jayco brings a lineup of innovative products into the Thor family, across multiple product categories. In particular, Jayco’s travel trailers, camping trailers, high-end diesel motorhomes and super C motorhomes will enhance and complement the existing Thor family of products.

Just sayin'....

[Arniesports60]

Only time will tell.

I would assume the main benefit for Thor is getting the
non-motorized rvs (trailers, 5th wheel) and the Integra line.

With the Gas A's who knows.. with Thor's lineup of
ACE, Axis, Windstars (which I consider inferior to Precept) lots
of overlap.

[oldenuftoknowbetter]

Thor operating entities (per ThorIndustries.com):

Airstream
Bison
Crossroads
Cruiser
DRV
Dutchmen
Heartland
Keystone
KZ
Livin' Lite


I don't think they are hurting for non-motorized units.

[Crabman]

Originally Posted by oldenuftoknowbetter

Thor operating entities (per ThorIndustries.com):

Airstream
Bison
Crossroads
Cruiser
DRV
Dutchmen
Heartland
Keystone
KZ
Livin' Lite


I don't think they are hurting for non-motorized units.

If I recall correctly Heartland and Crossroads were also independents that were swallowed up by Thor a few years back.