Winnebago Industries to purchase Indiana motorhome manufacturer

FOREST CITY — Winnebago Industries says they’re buying another motorhome manufacturer so they can expand into high-priced, luxury RVs.

The Forest City-based outdoor lifestyle product company announced this morning that it’s entered into an agreement to acquire Newmar Corporation for $344 million. Winnebago says Newmar, located in Nappanee Indiana, has been a leader in the recreational vehicle industry for over 50 years. Winnebago president and CEO Michael Happe says that the acquisition aligns with the company’s strategy and re-energizes their motorized business by enhancing the company’s position in the motorhome market.

Happe says Newmar producing the industry’s fastest-growing brands of full-sized motorhomes made them attractive to purchase. “Newmar’s talented leadership team, high-quality dealer network, and premium Class A and Super C offerings will enhance the capabilities and profitability of our motorhome segment. They will expand our overall RV portfolio and footprint in North America, and we anticipate it will drive significant value creation for our employees, customers and shareholders.”

Happe says when he was hired as the company’s CEO in 2016, the board of directors set three simple priorities for the future: restore Winnebago’s leadership in the motorized RV segment; establish a compelling towable-unit platform; and diversify into adjacent outdoor lifestyle manufacturing. Happe says after purchasing towable-RV maker Grand Design in 2016 and Chris-Craft Boats last year, the Newmar acquisition helps to fulfill the motorized RV goals.  “With the addition of Newmar’s high-quality brand or portfolio, we are taking a significant step forward towards that goal. At the same time, we remain unwavering in our commitment to the Winnebago brand of RVs as well and making those products more competitive in the market. We continue to drive growth in Class B and make progress executing operational improvements across the Winnebago brand, and together with Newmar in the future, we will have a formidable lines of high-quality, innovative products across the motorized segment.”

 Happe says Newmar’s high-end line of motorhome will help Winnebago capture a market they currently don’t serve.  “During our evaluation process, it became apparent that Newmar’s premium product line was highly complementary to the current Winnebago-branded motorhomes lineup. Newmar offers six RV models in the $400,000 to $1 million high-end motorhome segment which is not an area that our Winnebago brand of RVs has traditionally played in. Newmar’s premium models will serve to nicely extend our reach and add balance across the segment and fill in the gaps where we traditionally have not had a competitive model or presence.”

Happe says despite a slight slowdown in the RV industry in the last two years, he’s confident about the industry’s future.  “We remain confident of the prospects of the North American RV industry, both in the long-term but also in the short-term. We are extremely realistic about what has happened in the last 18 months, but we are confident that the RV lifestyle is not disappearing and continues to be healthy in many ways, and our Winnebago Industries current and now emerging collection of brands is poised to continue outgrowing the industry.”

Happe says Newmar will continue to operate as a distinct business within Winnebago Industries with its headquarters and manufacturing facilities remaining in Indiana.