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Author Topic: Winnebago purchases Newmar  (Read 2953 times)

garyb1st

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Re: Winnebago purchases Newmar
« Reply #30 on: September 21, 2019, 12:05:59 PM »
I think it's a brilliant move by the Miller family to cash in on their decades of investment while the RV market is at a historical peak. They get a bunch of cash, a big chunk of Winnebago stock so they can continue to cash in if the RV industry stays hot, plus they still get to play at running the family company. What's not to like about a deal like that?

Good point.  But there could be another element that's harder to evaluate.  From what I've read on line, Mahon Miller, a very successful inventor/innovator, only made it through 6th grade in his Mennonite School.  Based on that fact alone, in order to achieve what he did, he had to be a very bright, confident, open minded and extremely hardworking young man.  He obviously had large shoes to fill.  There's not much information on his son Matt.  Whether or not Matt was comfortable walking in those shoes will likely never be known. 
 
Gary B1st

2005 Pace Arrow 35G
2016 Jeep Wrangler


Poverty exists not because we cannot feed the poor, but because we cannot satisfy the rich.

Gary RV_Wizard

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Re: Winnebago purchases Newmar
« Reply #31 on: September 21, 2019, 02:04:42 PM »
Matthew has been President & CEO since 2006 and has received an award from the RVIA for his contributions to the industry, so I think he has had time to get used to those shoes.   However, running a successful mid-sized company in an extremely competitive industry is hardly a 9-5 job. Perhaps he has opted to reduce his stress, maybe even envisioning retirement in a few years.
Gary
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winona

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Re: Winnebago purchases Newmar
« Reply #32 on: September 22, 2019, 01:16:09 PM »
I think it's a brilliant move by the Miller family to cash in on their decades of investment while the RV market is at a historical peak. They get a bunch of cash, a big chunk of Winnebago stock so they can continue to cash in if the RV industry stays hot, plus they still get to play at running the family company. What's not to like about a deal like that?

For Winnebago, the benefits seem much more subjective. They invest their big supply of cash into a thriving business that [mostly] is not competing with their own products and get some luxury brand bragging rights, but it's difficult for me to see where there is any benefit to their design and manufacturing.  Dealers may benefit from carrying both brands, but they could do that before the merger simply by picking up the franchises they desired. Both companies franchise on a model-by-model basis, so dealers don't now get the whole Newmar line simply because they already carry some Winnebago lines. And they still deal with Newmar sales, service and warranty as separate entities.

The downside for Winnebago is the huge financial burden when RV industry sales inevitably go into the toilet during the next economic downturn. They have two companies (3 with Grand Design) to somehow keep afloat.  They've obviously forgotten 2009-2010. All three companies could go under if it is severe.

I agree.  What goes up, at some point comes down.  Lots of cash for Winnebago to sink in the the recreational industry.  Buying an RV usually comes after making the house payment.  :D
Winnebago Trend
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and now also Gracie, the Corgi with an attitude

Ray,IN

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Re: Winnebago purchases Newmar
« Reply #33 on: September 23, 2019, 07:33:50 PM »
 The deal to purchase Newmar actually hasn't been completed yet, the deal should be completed in early 2020.  https://www.streetinsider.com/Globe+Newswire/Winnebago+Industries+to+Acquire+Premium+RV+Manufacturer+Newmar/15916174.html

Winnebago also owns Chris-Craft Industries. https://finance.yahoo.com/news/winnebago-industries-acquire-premium-rv-113000321.html
2000 Winnebago Ultimate Freedom 40JD, ISC 8.3 Cummins 350, Spartan MM Chassis.  USA 1SG, retired, Good Sam Life member.
"And so, my fellow Americans: ask not what your country can do for you ask what you can do for your country." John F. Kennedy Jan. 20,1961