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  • Winnebago Industries, which makes recreational vehicles, including this Tour model, has rejected a buy-out offer from an investment firm.

    winnebago tour
May 19, 2012

Winnebago rejects purchase offer

THE GOSHEN NEWS

FOREST CITY, Iowa — Winnebago Industries, which manufactures recreational vehicles, has characterized an offer to purchase the company as “not credible.”

North Street Capital LP, a two-year-old private investment company in Greenwich, Conn., has sent a letter to Winnebago’s Forest City, Iowa headquarters outlining an offer to purchase all Winnebago stock for $11 per share.

Winnebago stock closed at $8.66 per share Friday, up 15 cents.

The Wall Street Journal reported the offer would be worth $322 million. It is the second offer to purchase the company from North Street in a month, according to the Journal. North Street offered $10.25 per share earlier.

“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,” Winnebago stated in a press release.

The company added, “Consistant 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 advisers, the board of directors of the company will review any additional information relating to the North Street letter and respond in due course.”

Winnebago reported in March a second quarter operating loss of $1.2 million compared to a $4.1 million profit for the same quarter in 2011. Net loss for the quarter was $912,000 vs. net income of $3.3 million in the same quarter in 2011.

For its first six months report, the company reported an operating loss of $537,000 compared to a profit of $9 million in the same period in 2011.

Winnebago obtained a presence in the Elkhart County RV industry in December 2010 when it purchased SunnyBrook RV for $5.7 million. The company builds towable RVs at its Middlebury facilities.

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