Equity Firm Makes $321 Million Cash Offer for Winnebago Stock
Winnebago Industries Inc. today (May 18) confirmed that it is in receipt of a letter from North Street Capital LP proposing to acquire all outstanding common shares of Winnebago Industries at a price of $11 per share in cash.
The deal would be worth $321 million.
Winnebago is the No. 2 motorhome manufacturer with 2011 sales reaching $496 million.
Trading had been halted after it surged 17 percent in premarket trading amid a Bloomberg report that North Street Capital had offered to purchase the company for $11 per share.
Winnebago stock was trading at $8.51 per share. Volume topped 650,000 shares when trading resumed at 10:35 a.m. EST.
The motorhome manufacturer has previously rejected an earlier takeover offer of $10.25 a share.
According to a news release, 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," the release stated.
The "offer" described in the letter is highly conditional, requiring, among other things, due diligence and further negotiation. The company advises that no offer has been made to shareholders and that they need not take any action at this time in response to North Street's letter.
North Street Capital is a Greenwich, Conn.-based privately held global investment management and advisory firm. The company invests in high-growth opportunities including leveraged buyouts and recapitalization transactions.