logo
Plus   Neg
Share
Email

Winnebago Industries To Buy Newmar For About $344 Mln - Quick Facts

Outdoor lifestyle product maker Winnebago Industries, Inc. (WGO) agreed Monday to acquire privately-owned Newmar Corp., a leading manufacturer of Class A and Super C motorized recreation vehicles, for total consideration valued at about $344 million.

The consideration consists of $270 million in cash and a fixed amount of 2 million shares of Winnebago Industries stock, based on the closing price of Winnebago Industries stock on September 13, 2019. The transaction also includes tax assets valued at over $30 million.

The transaction is expected to close in Winnebago Industries' first quarter of Fiscal 2020, subject to regulatory approvals and other customary closing conditions.

The acquisition of Newmar aligns with Winnebago's strategy to strengthen and re-energize its motorized business by enhancing its position and capabilities in the motorhome market. Newmar generated revenue of $661 million and an Adjusted EBITDA of $55.2 million as of LTM June 2019.

The combined company will have approximately $2.6 billion in pro forma revenue, and will leverage efficiencies of scale and best practices to drive additional margin expansion across the motorhome segment.

The transaction is expected to be immediately accretive to Fiscal 2020 cash earnings per share, excluding transaction costs, impacts of purchase accounting, and before giving effect to anticipated synergies.

Following the close of the transaction, Newmar will operate as a distinct business unit within Winnebago Industries with its headquarters and manufacturing facilities remaining in Nappanee, Indiana. Matthew Miller will continue to lead the Newmar business post-closing as its President.

Immediately following the transaction, Newmar shareholders will own approximately 6% of Winnebago Industries shares outstanding.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
The U.S. Department of Transportation says it received lesser number of complaints from consumers about airline services in August. In August, DOT received 1,712 complaints about airline service from consumers, down 1.0% from the total of 1,730 filed in August 2018 and down 8.7% from the 1,875 received... Shares of Netflix Inc. (NFLX) jumped 7% in extended trading session Wednesday after the online-video streaming giant said it added more subscribers in the third quarter after a disappointing previous quarter. The company's third-quarter earnings topped Wall Street estimates, as revenues surged 31%. Netflix... Alcoa Corp. (AA), the largest producer of aluminum in the US, Wednesday posted a wider-than-expected loss for the third quarter, reflecting a drop in revenues as well as one-time charges related to two smelters in Spain. The company also announced a "portfolio review" of its smelting and refining capacity...
RELATED NEWS
Follow RTT
>