FOREST CITY — Winnebago Industries has agreed to purchase an Indiana RV company for an estimated $344 million in cash and stocks.
Winnebago, whose largest motor home manufacturing facility is located in Forest City, but also has a plant in Waverky, announced plans on Monday to buy the Newmar Corp.
The purchase agreement calls for Winnebago to provide $270 million in cash plus 2 million in shares to acquire Newmar, according to a statement from Winnebago.
The value of the shares to be issued to Newmar shareholders is expected to bring the total value of the transaction to $344 million.
“Newmar’s dedication to manufacturing premium, high-end motor homes makes it a natural fit with our portfolio of leading outdoor lifestyle brands and we look forward to welcoming Newmar to the Winnebago Industries family,” said Winnebago President and CEO Michael Happe in a statement.
“The acquisition of Newmar aligns with our strategy to strengthen and re-energize our motorized business by enhancing our position and capabilities in the motor home market and building on the progress we have made driving growth and innovation across our offerings,” Happe said.
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Newmar has “generated significant growth and tremendous market momentum over the past several years, driven by their reputation for quality, innovative offering and strong relationships with dealers and end customers,” Happe said.
Newmar is a privately owned company that has been in business for 50 years.
Following the close of the transaction during the first quarter of the 2020 fiscal year, Newmar will operate as a distinct business unit within Winnebago Industries with its headquarters and manufacturing facilities remaining in Nappanee, Ind.
Matthew Miller will continue to lead the Newmar business as its president.
“Winnebago Industries has a deep heritage in the RV industry, and we are excited about the opportunity to join its portfolio of premium outdoor lifestyle brands,” Miller said in a statement.