Winnebago To Acquire Barletta For $270M To Strengthen Marine Market Presence

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  • Outdoor lifestyle product manufacturer Winnebago Industries Inc WGO has acquired Barletta Pontoon Boats, a pontoon boat manufacturer, for initial consideration of $255 million in cash and shares.
  • Winnebago will also provide up to $15 million in shares upon achieving performance milestones at the end of calendar 2021 and up to $50 million in additional cash consideration upon reaching growth objectives through 2022 and 2023.
  • Winnebago expects this transaction to be accretive to cash earnings per share in the first year after closing and be accretive to EBITDA margins.
  • Barletta reported 2020 revenues of $120.6 million and EBITDA of $10.5 million and expects 2021 revenues of about $215 million and EBITDA of $26.4 million.
  • The privately-owned company has a network of 125 dealer locations across the U.S. and Canada.
  • Winnebago expects to close this transaction early in the first quarter of FY2022.
  • Following the deal closing, Barletta will operate as a distinct business unit within Winnebago. Bill Fenech will continue to lead the Barletta business post-closing as its President.
  • Winnebago’s cash and equivalents as of May 29, 2021, is $405.8 million.
  • "The acquisition of Barletta significantly expands Winnebago Industries' presence in the strong and growing marine market by acquiring the fastest-growing brand within one of the most rapidly-growing boating segments," said CEO Michael Happe.
  • Price action: WGO shares are trading higher by 5.32% at $67.10 on the last check on Tuesday.
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