Now what for Chris-Craft? Winnebago just bought the iconic American boat company, started in 1874, the latest in a series of purchases of boat builders by companies in other recreational fields. The details of the purchase from Stellican Ltd., the London-based private equity firm that has owned Chris-Craft since 2001, aren’t known, but Winnebago made it clear that they see synergies and similar growth patterns in the boating and RV markets. They also have large growth plans for Chris-Craft.
This story from The Motley Fool points out that the RV market, like the boating market, has been enjoying a resurgence since the crash in 2008. The RV market has posted eight straight years of higher wholesale shipments; boat sales are at a ten year high, rising 5 percent last year.
Both RVs and boats need a healthy economy with strong consumer confidence, a strong housing market and growing disposable income for increased sales. The demographics are similar. Indeed, boat owners and RV owners are often the same people. Winnebago says that more than 30 percent of boat owners already own an RV.
In its announcement of the purchase, Winnebago said that buying Chris-Craft “aligns with Winnebago’s strategy to further diversify portfolio and add new growth platforms within the outdoor lifestyle market.”
Chris-Craft now makes boats from 21 to 38 feet in its factory in Sarasota, Florida. Winnebago says the Chris-Craft management team, under Stephen Heese, the president, will stay in place. It has 90 dealers. Winnebago said it wants to expand the current factory and the dealer network and then launch new boat models and sizes. It also wants to expand its branding by licensing in “adjacent nautically-inspired categories.” Read more:
https://www.fool.com/investing/2018/06/18/rv-maker-winnebago-is-the-latest-to-dip-its-toe-in.aspx
