Airxcel, Inc. Company Profile

Background

Overview

Founded in 1991, Airxcel, Inc. is a leading designer, manufacturer, and distributor of essential products for the recreational vehicle (RV) industry. The company's mission is to enhance the RV experience through innovative and high-quality products, solidifying its position as a pivotal player in the RV sector. Airxcel's product portfolio encompasses air conditioners, heating systems, cooking appliances, ventilation solutions, and more, catering to both original equipment manufacturers (OEMs) and the aftermarket.

Historical Milestones

1991: Airxcel was established following the acquisition of two business units from the Coleman Company in Wichita, Kansas.

1997: Merged with RV Products to form Airxcel, Inc., expanding its product offerings.

2019: Expanded into the European market with the formation of Airxcel Europe and the acquisition of Italian cookware supplier CAN S.r.l.

2021: Acquired by THOR Industries, Inc., a leading RV manufacturer, for $750 million, aiming to strengthen the supply chain and diversify revenue streams.

Key Strategic Focus

Core Objectives

Airxcel is committed to delivering innovative, high-quality products that enhance the RV lifestyle. The company focuses on expanding its product lines, strengthening supply chain capabilities, and fostering strategic partnerships to meet evolving customer needs.

Areas of Specialization

Airxcel specializes in manufacturing critical RV components, including:

Climate Control Systems: Air conditioners, heat pumps, and furnaces.

Cooking Appliances: Stovetops, ovens, and microwaves.

Ventilation Solutions: Roof vents and fans.

Structural Components: Roofing materials and composite panels.

Key Technologies Utilized

The company employs advanced manufacturing techniques and proprietary technologies to ensure product reliability and performance. This includes the integration of hydronic heating systems and innovative ventilation solutions tailored for RV applications.

Primary Markets Targeted

Airxcel serves a diverse customer base, including:

OEMs: Supplying components for new RV manufacturing.

Aftermarket: Providing replacement parts and upgrades for existing RVs.

International Markets: Expanding presence in Europe through Airxcel Europe.

Financials and Funding

Acquisition by THOR Industries

In September 2021, THOR Industries, Inc. acquired Airxcel for $750 million. This strategic move aimed to strengthen THOR's supply chain and diversify its revenue streams. Airxcel generated annual pro forma revenue of approximately $680 million at the time of acquisition.

Revenue Streams

Approximately 80% of Airxcel's revenues are derived from OEM sales, with the remaining 20% from aftermarket sales. Notably, about 30% of OEM revenues were generated from sales to THOR Industries' subsidiaries.

Pipeline Development

Recent Product Launches

2024: Introduced two new brands:

Solace: Offers modular seating, furniture, and cushion dinettes for the RV market.

Forma: Specializes in chassis components, including electric and manual tongue jacks and hydraulic leveling systems.

Product Showcase

Airxcel hosts annual OEM Product Showcases to unveil new products and innovations, demonstrating its commitment to continuous product development.

Technological Platform and Innovation

Proprietary Technologies

Airxcel's brands incorporate proprietary technologies to enhance product performance:

Aqua-Hot: Hydronic heating systems providing consistent and efficient heating.

Coleman-Mach: Advanced air conditioning units designed specifically for RVs.

Maxxair: Innovative ventilation solutions, including the Maxxfan Deluxe.

Scientific Methodologies

The company employs rigorous testing and quality control measures to ensure product reliability, including:

Environmental testing to simulate real-world conditions.

Use of advanced materials to enhance durability and performance.

Leadership Team

Executive Profiles

Anthony Wollschlager: Appointed President and CEO in November 2023. Joined Airxcel in 2016 through the acquisition of Dicor, serving as COO, Division President, and Group President.

Jeff Rutherford: Former President and CEO, transitioned to Chairman in November 2023. Led Airxcel for over a decade, overseeing significant growth and strategic initiatives.

Leadership Changes

In November 2023, Airxcel announced key organizational changes:

Anthony Wollschlager: Promoted to President and CEO.

Jeff Rutherford: Assumed the role of Chairman.

Competitor Profile

Market Insights and Dynamics

The RV industry has experienced significant growth, driven by increased consumer interest in outdoor recreation and mobile lifestyles. This growth has led to heightened competition among component manufacturers.

Competitor Analysis

Key competitors in the RV component manufacturing sector include:

Dometic Group: Offers a wide range of RV appliances and solutions, including air conditioners, refrigerators, and sanitation systems.

Lippert Components, Inc.: Provides chassis, axles, slide-outs, and other essential RV components.

Thetford Corporation: Specializes in sanitation solutions, refrigerators, and cooking appliances for RVs.

These competitors focus on delivering comprehensive solutions to RV manufacturers and consumers, emphasizing innovation and quality.

Strategic Collaborations and Partnerships

Acquisition by THOR Industries

The acquisition by THOR Industries has enabled Airxcel to:

Strengthen its supply chain capabilities.

Diversify and grow revenue streams.

Expand innovation focus through closer collaboration with OEM customers.

European Expansion

The formation of Airxcel Europe and the acquisition of CAN S.r.l. have facilitated entry into the European market, allowing Airxcel to offer its products to a broader customer base.

Operational Insights

Facility Expansions

Wichita, Kansas: Completed a 125,000 sq. ft. expansion to enhance manufacturing capacity for Coleman-Mach and Maxxair brands.

Elkhart, Indiana: Expanded warehouse operations to a 126,000 sq. ft. facility to improve logistics and order fulfillment.

Competitive Advantages

Airxcel's competitive advantages include:

Diverse Product Portfolio: Offering a wide range of essential RV components.

Strong Brand Recognition: Established brands like Coleman-Mach and Maxxair.

Strategic Partnerships: Collaboration with major RV manufacturers and suppliers.

Strategic Opportunities and Future Directions

Innovation and Product Development

Airxcel continues to invest in research and development to introduce innovative products that meet evolving customer needs, such as the recent launches of Solace and Forma brands.

Market Expansion

The company aims to strengthen its presence in international markets, particularly in Europe, through strategic acquisitions and partnerships.

Sustainability Initiatives

Airxcel is committed to sustainability, as evidenced by initiatives like the installation of rooftop solar panels to power manufacturing operations.