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Winnebago (WGO) Acquires Chris-Craft to Diversify Portfolio

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Winnebago Industries, Inc. WGO has announced of acquiring pleasure-boat maker Chris-Craft from the London-based private equity firm Stellican Ltd. for an unspecified amount. This acquisition is in sync with Winnebago’s strategy to diversify its portfolio in the outdoor lifestyle market. It also provides the company with a strong base for additional revenue generation.

Notably, Chris-Craft is a top brand with similarities to this Forest City, IA-based recreational vehicle (RV) manufacturer, Winnebago. Both the companies offer customers with highest-quality products and services. Winnebago’s solid brand, high-quality product line and strong position in the marine market make Chris-Craft a lucrative addition to its portfolio. Michael Happe, the CEO of Winnebago says that he finds a significant intersection between the RV and marine lifestyles. He also considers the boat business as a natural addition to its existing outdoor recreation portfolio, with similar customer demographics and ownership crossover.

For Chris-Craft, Winnebago has turned out to be an ideal partner. This provides Chris-Craft with a chance to further develop by leveraging on Winnebago’s capital and resources. It is expected that the acquisition of Chris-Craft is going to be immediately accretive to Winnebago’s fiscal 2019 earnings per share. Moreover, Stephen Heese will continue to lead the Chris-Craft business as its President.

In a year’s time, shares of Winnebago have outperformed the industry it belongs to. Over this time frame, the stock has risen 38.6% while the industry moved up 16.6%.



Winnebago currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

A few better-ranked stocks in the auto space are Oshkosh Corporation OSK, Allison Transmission Holdings, Inc. ALSN and Ferrari N.V. RACE. While both Oshkosh and Allison Transmission Holdings carry a Zacks Rank # 1, Ferrari has a Zacks Rank # 2 (Buy).

Oshkosh has an expected long-term growth rate of 18.3%. Shares of the company have risen 14.1% over the past year.

Allison Transmission Holdings has an expected long-term growth rate of 10%. Over the past year, shares of the company have gained 9.5%.

Ferrari has an expected long-term growth rate of 17.3%. Over the past year, shares of the company have gained 46.3%.

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