Go Back   iRV2 Forums > iRV2.com COMMUNITY FORUMS > RV Industry Press
Join iRV2 Today

Mission Statement: Supporting thoughtful exchange of knowledge, values and experience among RV enthusiasts.
Thread Tools Search this Thread Display Modes
Old 10-06-2016, 11:47 AM   #1
iRV2 Marketing
DriVer's Avatar
Winnebago Owners Club
Workhorse Chassis Owner
Coastal Campers
Carolina Campers
Join Date: Jan 2000
Location: Conway, SC
Posts: 22,835
Blog Entries: 70
Winnebago to Acquire Grand Design


Accretive Acquisition Adds Fast-Growing Towable RV Brand to Winnebago’s Leading Motorized Platform

FOREST CITY, IOWA, October 3, 2016 – Winnebago Industries, Inc. (NYSE: WGO) today announced that it has entered into a definitive agreement to acquire Grand Design Recreational Vehicle Company ("Grand Design"), a manufacturer of towable recreation vehicles (RVs), for approximately $500 million in cash and newly issued Winnebago shares.

Founded in 2012 by Don Clark, Ron Fenech and Bill Fenech, a management team with over 80 years of combined leadership experience in the RV industry, Grand Design is a fast-growing manufacturer in the towables segment with rapidly expanding market share. The Company generated $428 million in revenue over the last twelve months ending August of 2016, representing a compound annual growth rate of over 80% since 2013, and a top tier EBITDA margin of 14%.(1) Grand Design is a portfolio company of global growth equity investor Summit Partners.

The acquisition is expected to be immediately accretive to Winnebago’s growth profile, profit margins and earnings per share (EPS), excluding transaction costs and before giving effect to anticipated synergies. The transaction is expected to close by the end of Winnebago’s first fiscal quarter of 2017, subject to regulatory approvals and other customary closing conditions.

"Grand Design has built a tremendous reputation and position in our industry by delivering quality products and high levels of customer satisfaction, and we are excited to welcome them to the Winnebago family," said Michael Happe, Winnebago’s President and Chief Executive Officer. "Grand Design’s differentiated and nimble approach to serving today’s towable consumer, proven ability to deliver exciting new products and deep industry expertise complement our existing capabilities and Winnebago’s iconic brand. The addition of Grand Design will accelerate our expansion in the towables business, creating a broader and more balanced portfolio well-positioned to capitalize on the opportunities across the RV market and to drive improved profitability and long-term value for stakeholders."

Mr. Happe continued, "I look forward to working closely with Don, along with the rest of the Grand Design team. With a shared focus on quality products, dealer relationships and customer service and satisfaction, together we will be even better positioned to serve dealers and customers well into the future."

Don Clark, Co-Founder and CEO of Grand Design, commented, "This is an exciting day for Grand Design and reflects the hard work and dedication of everyone involved in our rapid growth and success over the past several years – the Grand Design team, our valued customers and our investors. We have incredible respect for Winnebago and are honored to join an iconic company that shares our dealer-centric, customer-focused culture. This shared foundation makes our two companies an ideal fit, and we look forward to maintaining our unique identity as an agile competitor as we leverage Winnebago’s strong platform to broaden Grand Design’s reach and deliver the best possible product and service to our dealers and our customers."

"We are proud to have partnered with Don and the entire Grand Design team and congratulate them on the exciting new partnership with Winnebago," said Jay Pauley, a Principal at Summit Partners.
Transaction Highlights
- The combined company will have approximately $1.4 billion in pro forma revenue along with a broader and more balanced portfolio well-positioned to deliver growth, improved profitability and value.
- The transaction is expected to be accretive to Winnebago’s growth profile, profit margins and EPS, excluding transaction costs and before giving effect to anticipated synergies.
- Annual run-rate cost synergies are anticipated to be $7 million, phased in over three years, to be achieved through identified opportunities in purchasing and the elimination of redundant processes with additional upside potential from sharing of manufacturing best practices.
- The $500 million purchase price includes tax assets valued at over $75 million. After adjusting for the value of the tax assets, the purchase price implies a multiple of 7.1x Grand Design’s last twelve months EBITDA of $60 million.
- Winnebago expects to fund the transaction through a combination of $395 million in cash and $105 million in newly issued Winnebago shares. J.P. Morgan has agreed to provide committed financing for the transaction. Upon closing, Winnebago expects to have a debt to EBITDA ratio of approximately 2.5x, inclusive of anticipated annual run rate synergies.
- The combined company is expected to generate significant cash flow that will facilitate rapid debt reduction. Winnebago expects to reduce its debt to EBITDA ratio to below 1.5x by the end of Fiscal 2018.
- Immediately following the transaction, Grand Design shareholders will own approximately 14.5% of Winnebago shares outstanding.
- Don Clark will continue to lead the Grand Design towables business post-closing as its President; he will also serve as a Vice President for Winnebago and be a member of the Executive Leadership Team.
- Grand Design will operate as a distinct business unit within Winnebago with headquarters remaining in Middlebury, Indiana, and its portfolio of brands will remain in place.

About Winnebago
Winnebago is a leading U.S. manufacturer of recreation vehicles, which are used primarily in leisure travel and outdoor recreation activities. The Company builds quality motorhomes, travel trailers and fifth wheel products. Winnebago has received the Quality Circle Award from the Recreation Vehicle Dealers Association every year since 1996. Winnebago has multiple facilities in Iowa, Indiana, Oregon and Minnesota.

About Grand Design
Grand Design was founded in 2012 and is one of the fastest-growing RV companies in the industry. Since its founding, Grand Design has shipped 25,000 units and has sold over 21,000 units at retail. Grand Design manufactures the market leading Reflection fifth wheel and travel trailer, flagship Solitude extended stay fifth wheel, luxury Momentum toy hauler and lightweight Imagine travel trailer product lines.


03 Adventurer 38G, Workhorse W22
F&R Track Bars, Safety+ , Ultrapower, Taylor Extremes, SGII
TST 507, Blue Ox, SMI, Koni FSD, CrossFire
RV/MH Hall of Fame - Lifetime Member
DriVer is offline   Reply With Quote
Join the #1 RV Forum Today - It's Totally Free!

iRV2.com RV Community - Are you about to start a new improvement on your RV or need some help with some maintenance? Do you need advice on what products to buy? Or maybe you can give others some advice? No matter where you fit in you'll find that iRV2 is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with other RV owners, see fewer ads, upload photographs, create an RV blog, send private messages and so much, much more!

Old 10-06-2016, 03:03 PM   #2
Senior Member
Join Date: Feb 2016
Posts: 306
Selling out at a good price and helping Winnebago stay competitive with Thor and rev....

gtsum2 is offline   Reply With Quote
Old 10-15-2016, 07:18 PM   #3
Junior Member
Join Date: Mar 2014
Posts: 7
I'm not as enthusiastic as others about this buyout... and others. The consolidation in the RV industry is reducing competition and creating the equivalent of big box RV manufacturers. Does anyone really think these big RV guys are going to be responsive to individuals' suggestions and critiques. They are the ones who will dictating what the consumer is going to get.

Of course the Winni CEO is excited. He's not going to admit he bought a pig in a poker. Nor are the founders/owners who are walking away with big $s. Silicon Valley in RV clothing. Create a company and find a guy with big $s to buy you out. But please spare my "this is exciting" stuff. It is just the biz-i-niz.
New Hampshire
2usaretired is offline   Reply With Quote


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
Winnebago takes Grand Design! Atom Ant Winnebago Industries Owner's Forum 0 10-05-2016 08:33 AM
Thor Industries Announces Plan to Acquire Jayco Scarab0088 Thor Industries Owner's Forum 5 07-17-2016 04:00 PM
Garmin to Acquire DeLorme DriVer Technology: Internet, TV, Satellite, Cell Phones, etc. 6 02-14-2016 10:10 AM
Jayco signs letter of intent to acquire Open Range Us out West Jayco Owner's Forum 1 03-01-2014 04:21 AM
Lazydays Completes Deal to Acquire Beaudry RV mythplaced iRV2.com General Discussion 13 06-06-2011 01:56 AM

» Virginia Campgrounds

Reviews provided by

Our Communities

Our communities encompass many different hobbies and interests, but each one is built on friendly, intelligent membership.

» More about our Communities

Automotive Communities

Our Automotive communities encompass many different makes and models. From U.S. domestics to European Saloons.

» More about our Automotive Communities

Marine Communities

Our Marine websites focus on Cruising and Sailing Vessels, including forums and the largest cruising Wiki project on the web today.

» More about our Marine Communities

Copyright 2002-2015 Social Knowledge, LLC All Rights Reserved.

All times are GMT -6. The time now is 04:06 PM.

Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.