Winnebago acquires Newmar

[NealC]

I can’t stand that guys videos but the content of this one was valuable but nothing we all don’t know. Hopefully next week everyone can get back on with their lives. This is out of our control and it will all work out fine. 2027 Essex is still on order.

[RKins]

Isn't that the guy that was bad mouthing the fit and finish of an Essex in a video lately?



Obviously Newmar will be it's own P&L center under WG.
I am surprised at the number of coaches that arrive each week for warranty work - must be costing Newmar a fortune in lost profit from the original sale. This will be one of the focal points of the bean counters going forward.

[Akdare]

Originally Posted by MidMichHunte

12 months ago, we were wondering what manufacturer we should pick as our first MH – Decision made, it’s going to be a Newmar.

8-6 Months ago, typical, Gas or DP decision – Decided DP, but DW decided Gas due to $$$, so it’s going to be a gasser.

4 months ago, the question was which Newmar - Decided on a Bay Star

A month ago, decided on a 3609

2-3 weeks ago, the question was: 2019 off the lot or order a 2020 exactly as we wanted it. Order a 2020 was decided.

Last weekend decided to set up a Factory Tour and spec out the “Specials” we want.

Last Monday early morning (9/16) Called Newmar, set up tour date and exchanged emails on what Specials they’d let us do on a Bay Star. Got most of what we wanted.

Last Monday late afternoon/early evening read the news, Newmar acquired by Winnebago, Oh Shoot…

All week, wondering what to do, jump ship, wait to see what happens to Newmar or just order now and get a Newmar built MH, prior to Winnebago taking over.

We’re still not 100% sure when to do it, but I will tell you, it’s going to be a Newmar/Winnebago Bay Star 3609. We spent too much time looking to find what we want to change plans now. Are we crazy? Some will think so, but other will not.

The current question is when to place the order, now, next week, next month, in 3 months or next year. Any & all suggestions are welcome on this, so please share your thoughts and reasoning why.

After reading this thread over the week along with other Winnebago, Newmar and independent write ups/posts on the acquisition, and looking at where Newmar will fit into the Winnebago family, I feel confident it’s a win/win/win:

• Win for Winnebago: They are getting a Marquise name, a highly respected company with a high quality HM line & group of Craftsmen to continue the success. Oh, and they took a competitor out.

• Win for Newmar: Winnebago has deep pockets, a good infrastructure and buying power. Not to mention the gap in the Winnebago offerings are nicely filled by Newmar.

• Win for customers: Efficiencies both in purchasing and manufacturing should decrease costs. Also, Winnebago has better warranties and more repair facilities than Newmar. Now I just hope they will support the Newmar product line.

Now all of this is just my opinion as an outsider looking in, but after looking at the attached presentation I found, and thinking about the amount of $ spent to get Newmar, Winnebago understands what they got and sees a good ROI from the acquisition, why would the change it too much?

OK, there will be changes, probably over the $5mln in synergies they mentioned, but I don’t see Newmar looking much different in 5-10yrs. There may be a smaller DP line, they may sunset 1 maybe, 2 at the most. IMHO, the DP line is really why they bought Newmar. I’d bet at least one gasser, probably the Bay Star Sport, will be sunset, it’s too close in quality to other Winnebago models.

The Canyon Star is a question mark in my mind, maybe it’ll become their customizable/High End gas MH while they Bay Star becomes standardized, no options.

The new Super Star Super C? Could the release of this been tied to the acquisition? Coincidence???

So, this when a different direction than I thought it would when I started typing; if you’re still reading this, thanks for putting up with my rambling on. If you think I’m off may rocker, you’re possibly right, but remember, as I said above, this is just my opinion or $0.02, and it’s probably worth just about that…

Thanks for finding and posting this presentation. Lots of pertinent information; especially interesting to read about the % of customized coaches; I think that will continue under Winnebago...it’s way too profitable.

I just put the deposit down on a 2020 New Aire. Estimated FPU late January. Been looking at them for a long time...was just finishing putting together my specials when the announcement came.

Mergers & Acquisitions are a fact of life in our capitalist society...at some point, economies of scale are needed to have companies continue to operate profitably.

[Rvlegaleagle]

Youtube video post 26 minutes ago on the sale of Newmar to Winnebago from the Newmar headquarters

https://www.youtube.com/watch?v=0aQTLFnp4g4

[CaptainGizmo]

Man...this guy Andrew Steele; a high-en detainee. Talk about an opportunist. Can’t say I knock him for going after the revenue from YouTube, but hmm. He’s really goin for it after this “event”.

Wonder how they felt if/when He rolled up in his Tiffin. [emoji15]

[specmga1]

After watching this video, I’m even more convinced that you can kiss Newmar quality good-bye!

[joes2901]

For interesting information read Winnebago's acquisition announcements for the past several years. The Chris Craft and Grand Designs are like the Newmar one. The big + for WBO was the ability to add the earnings of the acquired to its coming years revenue. Last fall's earnings call touted growth to $2B revenue and $100M profit. Newmar at a third the revenue and half the profit of WBO in this deal may have been more important for financial figures than the on the floor pride in a job well done when building great motorhomes. A distant conglomerate may not understand the needs of the acquired to improve their operations and product quality and customer service/satisfaction.

A fast growing comglomerate may be preparing to be a target to bigger multi-billion investors who see satisfied customers of whatever produces the income as an annoyance. Buy up all the toilet paper makers and you don't have to care about customer complaints of getting splinters when they use the TP.

[USMCRET]

Originally Posted by NealC

I can’t stand that guys videos but the content of this one was valuable but nothing we all don’t know. Hopefully next week everyone can get back on with their lives. This is out of our control and it will all work out fine. 2027 Essex* is still on order.

*Winnesex

It sings, doesn't it?

[TJ]

I think it would have been more effective if Matt Miller had done the interview rather than John Sammut, VP of Sales and Marketing. That said, I also think we need to give Newmar the benefit of the doubt here.

It was,obviously, a Miller family decision rather than a corporate decision, to sell Newmar. With Mahlon Miller turning 80, it is only fair that he benefit personally from his investment in 1984. I've met Mahlon and he's a very honorable man with great concern for Newmar and its customers. Time to let him enjoy the remainder of his life without having to be concerned about what happens to Newmar when he eventually passes.

Selling a company like Newmar is not a simple process and there are a limited number of options available. Selling it to one of the industry leaders (whether of not we think they are) is one of the few. A much worse option, IHO, would have been to sell the company to a capital venture outfit that would immediately strip every bit of cash value out of it and then discard the shell.

I applaud Newmar for putting one of its executives out front...even if it wasn't Matt Miller...to give the company's side of the story.

TJ

[specmga1]

Putting out one of its executives out front is not a good sign!

[Mapnerd]

Originally Posted by CaptainGizmo

Wonder how they felt if/when He rolled up in his Tiffin. [emoji15]

I snorted

[TJ]

Originally Posted by specmga1

Putting out one of its executives out front is not a good sign!

I respectfully disagree! There is so much misinformation floating around that Newmar needs to get its story out and using one of its long-time execs as a spokesperson allows that.

As I said previously, it probably would have been more effective to have Matt Miller do the interview, but he may have been too close to the family side of the issue.

TJ

[joes2901]

Remember, all corporate, company, owner, exec/mgr, and PR statements are to protect what they have and advance their interest ahead of yours. Most Newmar owners have lived long enough to know to trust only after they verify the utterances of salesmen, politicians, public media, and reporters.

[specmga1]

Originally Posted by joes2901

Remember, all corporate, company, owner, exec/mgr, and PR statements are to protect what they have and advance their interest ahead of yours. Most Newmar owners have lived long enough to know to trust only after they verify the utterances of salesmen, politicians, public media, and reporters.

AGREE!