On October 3rd Winnebago announced that it has struck a deal to acquire Grand Design Recreational Vehicles for $500 million in stock shares and cash.
Grand Design Recreational Vehicles is a manufacturer of towable trailers. The company was founded in 2012 by Don Clark, Ron French, and Bill French. The three were previous executives at a leading manufacturer of RVs. They wanted to build a recreational vehicle company that kept its focus on the customers.
While they have accomplished that, they also built a company that focused on quality. Before any RV arrives at the dealership it makes a stop at a separate facility where they complete a 150-point pre-delivery inspection. Their superior quality and service has helped them to see quick growth in the market.
Winnebago is a brand that does not typically need an introduction in the market. Incorporated in the early 1950’s, it is a brand that is easily recognized by consumers. In the press release by Winnebago, Michael Happe, President and CEO stated: “Grand Design has built a tremendous reputation and position in our industry by delivery quality products and high levels of customer satisfaction, and we are excited to welcome them to the Winnebago family…. The addition of Grand Design will accelerate our expansion in the towables business, creating a broader and more balanced portfolio well-positioned to capitalize on the opportunities across the RV market and to drive improved profitability and long-term value for stakeholders.”
This deal is something that Don Clark of Grand Design shared excitement for. In his statement he said, “This shared foundation makes our two companies an ideal fit, and we look forward to maintaining our unique identity as an agile competitor as we leverage Winnebago’s strong platform to broaden Grand Design’s reach and deliver the best possible product and service to our dealers and our customers.”
You can read the full details of the acquisition in the official press release.
