Winnebago Industries said it has entered into a definitive agreement to acquire Barletta Pontoon Boats, which it calls the industry’s fastest-growing pontoon boat manufacturer. Initial consideration is $255 million in cash and newly issued Winnebago shares, plus up to $15 million in Winnebago shares upon the achievement of performance milestones at the end of 2021.
Certain growth objectives, if achieved through calendar years 2022 and 2023, will provide the opportunity for up to $50 million in additional cash consideration.
Winnebago Industries said the transaction extends its marine platform into one of the fastest-growing boating segments, as well as advances the company’s ongoing evolution into an outdoor lifestyle company, and is expected to drive significant financial accretion.
Barletta was founded in 2017 with a stated focus on high-quality, innovative products, unrivaled service and strong dealer relationships, which allowed the company to grow rapidly in the pontoon boat segment and establish a strong, differentiated position in the market. The privately-owned company manufactures pontoon boats and has a network of 125 dealer locations across the U.S. and Canada, with coast-to-coast coverage and significant opportunity for regional expansion, the company said.
Barletta generated full-year 2020 revenues of $120.6 million and EBITDA of $10.5 million, and expects to deliver full-year 2021 revenues of approximately $214.6 million and EBITDA of $26.4 million. Barletta’s growth trajectory is supported by a strong backlog of orders, the company said. Barletta recently opened a new manufacturing facility in Bristol, Ind., to add production capacity and scale to better meet the demands of its continued growth.
“The acquisition of Barletta significantly expands Winnebago Industries’ presence in the strong and growing marine market by acquiring the fastest-growing brand within one of the most rapidly-growing boating segments,” said Winnebago Industries President and CEO Michael Happe. “Barletta’s premium, innovative pontoon boats are a natural fit with our broader brand portfolio, with shared appeal among families looking to create great experiences and memories on land or on water. Barletta’s commitment to quality, innovation and service – the same golden threads that unite all Winnebago Industries brands – and strong relationships with its dealer partners, has driven tremendous growth, enabling Barletta to become a rising force in the industry in a short period of time. We look forward to leveraging our operational excellence, functional resources and proven expertise in nurturing and growing outdoor lifestyle brands to fuel the organic expansion of Barletta’s product line, market share and margins. We are excited to welcome Barletta’s talented employees to the Winnebago Industries team and believe this transaction positions us well to deliver enhanced growth and significant value creation for employees, customers and shareholders.”
Barletta President and founder Bill Fenech – who also co-founded Grand Design RV, which is also owned by Winnebago – said, “Today is an exciting day for Barletta, as Winnebago Industries’ track record of cultivating premium outdoor lifestyle brands will allow us to further accelerate our growth, expand our offerings and gain greater share of the pontoon boat market segment. Our shared values and dedication to creating exceptional outdoor experiences make Winnebago Industries an ideal owner and partner for us. We look forward to continuing to innovate and deliver the highest-quality products, unrivaled customer experience and win-win partnerships with our dealers as Barletta grows within the Winnebago Industries portfolio.”
Following the close of the transaction, Barletta will operate as a distinct business unit within Winnebago Industries. Winnebago Industries’ public reporting will include the formation of a new marine reporting segment, comprised of Barletta and Chris-Craft. Barletta’s manufacturing facilities will remain in Bristol, Ind., and Bill Fenech will continue to lead the business as president.
