UPDATE:
Today Winnebago announced that it has completed its acquistion of Newmar Corporation.
In a press release, Winnebago says, "Consideration paid included $270 million in cash plus two million shares of Winnebago common stock."
ORIGINAL POST:
Monday morning Winnebago Industries announced it would acquire Newmar Corporation.
Newmar makes luxury motorhomes. It’s based in Nappanee. Winnebago is headquartered in Iowa. Winnebago will pay about $344 million for Newmar; some paid in cash and the rest in Winnebago stock.
Winnebago CEO Michael Happe said the acquisition is meant to expand the company’s portfolio and make it stronger as a whole business.
“In our view that means premium brands, premium products, premium channels, premium talent and hopefully premium profitability over time. And thus I’m excited that the next step in the transformation of our company is the acquisition of the Newmar corporation.”
Happe said the Newmar brands will stay a separate unit of Winnebago. Manufacturing for the Newmar RVs will stay in Nappanee.
There was talk on the investor call about the downturn in the RV market, but Happe said they believe the changes they’ve made, including this acquisition, put them in a better position to weather any economic struggles.
The acquisition is expected to close mid-November.
Contact Jennifer at jweingart@wvpe.org or follow her on Twitter at @jen_weingart
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