Winnebago Industries has acquired Newmar Corp., a maker of premium motorhomes, for $344 million to expand its product line and amp up its motorized segment, the company has announced.
Winnebago will pay $270 million in cash and will compensate for the remainder in stock. The deal is expected to close by yearend.
The RV OEM acquired Newmar as a part of a strategy to enhance its offerings and to energize its motorized business. Winnebago’s revenue from the motorized segment fell 34.6% to $160.2 million year over year, the company reported during a June earnings call.
Newmar manufactures motorized RVs, which consist of high-end Class A and Super C motorhomes. The pricing for Newmar’s luxury King Aire begins at $962,130.
Newmar’s portfolio of premium RVs complements the gaps in Winnebago’s own model offerings. While both OEMs offer five different models priced under $400,000, Newmar has six models above $400,000 compared with one from Winnebago.
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While retail sales in the RV industry have been trending downward, Newmar has been reportedly overperforming the industry. Newmar’s retail sales grew 1.3% year over year through July, “well ahead” of the Class A industry, which is down 16% year to date, according to a report BMO Capital Markets provided Powersports Finance.
Winnebago projects that when combined with Newmar, total revenue will increase to $2.7 billion from $2 billion, with 57% coming from the motorized segment.
Newmar works with 57 dealerships, one-third of which overlap with Winnebago’s dealer network.
Founded in 1968, Newmar is based in Nappanee, Ind. The company has 1,060 employees and after the acquisition closes, it will operate as a distinct business unit run by current Chief Executive Matt Miller.