Recreational vehicle maker Winnebagoannounced an agreement on Monday to acquire fellow RV manufacturer Newmar for an estimated $344 million.
Iowa-based Winnebago, which also makes trailers and boats, will pay $270 million in cash and 2 million shares of stock for Newmar, which produces Class A and Super C motorized RVs. The new company, according to the announcement, would feature $2.6 billion in combined revenues and an expanded profit margin through efficiencies of scale and best practices.
Officials said the proposed acquisition would combine Newmar, the motorhome industry’s fastest-growing brand, with the segment’s most well-known brand.
“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,” Winnebago President and CEO Michael Happe said in a statement. “The addition of the Newmar brand will further differentiate Winnebago Industries.”
The deal, if approved by regulators, is expected to close in the first quarter of the fiscal year 2020. Newmar would remain a distinct business unit with Matthew Miller continuing as president. The company would also keep its headquarters and factory in northern Indiana.
