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

(RTTNews) - 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.