Winnebago Industries (NYSE:WGO), a company that sells recreation vehicles primarily used for leisure and outdoor activities yesterday announced that they will be acquiring Grand Design Recreational Vehicle Company. The acquisition price is approximately $500 million in cash and newly issued Winnebago shares.
Winnebago Industries, Inc. CEO’s Comments
Grand Design has built a tremendous reputation and position in our industry by delivering quality products and high levels of customer satisfaction, and we are excited to welcome them to the Winnebago family,” said Michael Happe, Winnebago’s President and Chief Executive Officer. “Grand Design’s differentiated and nimble approach to serving today’s towable consumer, proven ability to deliver exciting new products and deep industry expertise complement our existing capabilities and Winnebago’s iconic brand. 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.
Mr. Happe continued, “I look forward to working closely with Don, along with the rest of the Grand Design team. With a shared focus on quality products, dealer relationships and customer service and satisfaction, together we will be even better positioned to serve dealers and customers well into the future.” Market Wired
WGO Technical Analysis
WGO opened trading yesterday at $27.00, which was up from previous days trading close of $23.57. WGO closed trading yesterday at $29.15 an increase of 24% from the closing price on Friday. Taking a look at the daily chart we can see the last time WGO traded above these levels we have to go back to the week of December 9, 2013 when it traded at $30.66. Taking a closer look at the daily chart we can see that before AEGR has been in an overall upward trend dating back to February 9 when it traded at $16.33. AEGR has a float of 26.48 million shares and traded 24 times the normal daily trading volume on Monday. For trading purposes, I would like to see AEGR open trading on Tuesday above $28 and if it does I would be looking to take a long position at the bell. My stop loss would be $0.50 from my entry position fearing anything more than that and the stock would start to fill in the gap up.
Company Profile
Winnebago Industries, Inc. manufactures and sells recreation vehicles primarily for use in leisure travel and outdoor recreation activities. The company manufactures motor homes, which are self-propelled mobile dwellings that provide living accommodations and include kitchen, dining, sleeping, and bath areas, as well as a lounge. It also offers travel trailers and fifth wheel trailers; original equipment manufacturing parts, including extruded aluminum and other component products for other manufacturers; and commercial transit buses to public and private transportation agencies for use in community based transit programs, para transit applications, hospitality shuttles, car rental shuttles, airport shuttles, and other various applications under the trade names of Metro, Metro Link, and Metro Connect. In addition, the company provides commercial vehicles, which are motorhome shells for law enforcement command centers, and mobile medical clinics and office spaces, as well as offers commercial vehicles as bare shells to third-party upfitters. The company sells its products primarily through independent dealers in the United States and Canada. Winnebago Industries, Inc. was founded in 1958 and is headquartered in Forest City, Iowa.