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Outdoor lifestyle product manufacturer Winnebago Industries Inc (NYSE: 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 5.8 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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