U.S. recreational vehicle maker Thor Industries Inc. said Feb. 15 that it formed a 50/50 joint venture with New Zealand-based Tourism Holdings Ltd. to roll out online RV services across the world.
Cincinnati-based Thor expects to put about $50 million into the business, called TH2, with RV rental service operator Tourism Holdings.
The digital marketplace platform TH2 will feature services like trip planning and booking, remote systems monitoring, roadside assistance, and peer-to-peer RV and campsite rental. Thor President and CEO Bob Martin said TH2 will cater to an "evolving consumer base" that would prefer to access its services through an online portal.
Thor said it will record the partnership using an equity method of accounting starting from the company's third quarter of the year. It expects the transaction to have minimal impact on its fiscal 2018 earnings,
"Our strategic plan continues to focus on making the appropriate investments in our manufacturing footprint, paying down our debt, assessing acquisition opportunities and increasing returns to our investors," Thor Executive Chairman Peter Orthwein said in a statement. "The joint venture announced today is an example of our ongoing efforts to enhance long-term shareholder value."
The deal, scheduled to close by February-end, will base TH2's headquarters in Cincinnati. Bob Wheeler, president and CEO of Thor unit Airstream, will become president of the venture.
