FOREST CITY, Iowa, May 18, 2012 — Winnebago Industries, Inc. (NYSE – WGO) today confirmed that it is in receipt of a letter from North Street Capital, LP (“North Street”) proposing to acquire all outstanding common shares of Winnebago Industries at a price of $11.00 per share in cash. Company management has reviewed with the board of directors of the Company information provided by North Street in connection with the offer and has determined that, to date, it has not received sufficient information to deem the offer as credible. Consistent with its fiduciary duties to act in the best interests of Winnebago Industries and its stockholders, and in consultation with its independent financial and legal advisors, the board of directors of the Company will review any additional information relating to the North Street letter and respond in due course.
(PHOTO: A Winnebago worker at his job at the Forest City plant)
The Des Moines Register is now reporting that North Street wants to build cars and trucks in Forest City. “We’re less attracted by the name Winnebago than we are by the company itself internally and its integrity to manufacturing,” Mascioli told the Register. “We feel the RV industry has been hit pretty hard with the financial crisis and is pretty stagnant.”
Winnebago has a limited market appeal because of the economy and they are dependent on one dealer for a large proportion of their sales. They haven’t recovered to pre-recession employment levels. Given that they have rarely been profitable over the last 4 years seems like $11/share is generous. If a new owner can provide more stable jobs for this region, perhaps a sale is a good idea.
WOW Eleven dollars a share!!
I know someone who recently was hired to build cabinets in their Charles City plant and is currently working between 11 and 12 hours a day. Doesn’t sound stagnat to me.
Peter-I could be wrong here but I believe the Charles City plant is no longer Winnegbago. It is now the new tire plant.
We are alive and well in Charles City. All hardwood components, countertops, and compartment doors are built in Charles City. As well as the ERA motorhome.