Recreational vehicle maker Winnebago Industries Inc. (NYSE: WGO) said this morning that the company received an offer from private equity firm North Street Capital L.P. to acquire all of Winnebago’s outstanding shares for $11/share in cash. The total value of the offer is $321 million.
The motor home maker also said that it “has not received sufficient information to deem the offer as credible.” The company also noted:
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.
For its quarter ended in February, Winnebago reported a net loss of $912,000, blaming “increased discounts and continued aggressive pricing strategies” for the shortfall. Shares have not priced above $20 since early 2008, as the US recession battered sales and margins and the economic recovery has been slow. High gas prices don’t help either.
Winnebago’s shares are up, but the company’s lukewarm response to the offer is capping the enthusiasm. Shares are trading up about 5.4% at $8.97 in a 52-week range of $6.02-$12.40.