In the previous installment of our coverage of Winnebago’s developments on the cusp of 2019, MobileRVing.com profiled the company’s new products in the motorhome, towable, and commercial segments. In this part 2, we’ll take a look at Winnebago’s 2018 surprising acquisition of iconic boat manufacturer Chris Craft.
Acquiring the Florida boat builder may seem like a surprising move but the acquisition makes sense at many levels. The companies have similar histories and equally passionate owners, there are clear market opportunities, and the merger helps Winnebago establish a stronger more diversified brand.
The move is part of Winnebago’s strategy of evolving beyond being strictly an RV manufacturer to positioning itself as a leading U.S. manufacturer of outdoor lifestyle products. In short, that meant going beyond the existing recreational vehicles brands (Winnebago and Grand Design), and Chris-Craft’s marine products were a superb fit. Winnebago CEO Michael Happe said, “We made strong strides in the journey to transform ourselves into a premier, outdoor lifestyle company, especially...into the attractive marine market with the acquisition of Chris-Craft.”
It all started with a conversation about creating a Chris-Craft-branded Winnebago to compete with Airstream. According to Chris-Craft president Steve Heese, conversations about Winnebago buying the boat builder started about a year before the acquisition. Several marine companies had approached Chris-Craft about selling in the past but none seemed to be a good fit. However, once Heese got to know Winnebago he knew there was good synergy. “You get to the point in your life where it’s more than just money,” he said. So, in June of 2018, Winnebago signed the deal and acquired Chris-Craft from equity firm Stellican Ltd., which has owned the company since 2001.
Excited about the potential, Winnebago’s Happe said, “We look forward to working with the talented Chris-Craft team and to welcoming them to the Winnebago family.”
1945 Chris-Craft Runabout. [Photo/Wikimedia Commons]
Put simply, both Winnebago and Chris-Craft grasped the value in aligning themselves with the other’s name and reputation. Perhaps that’s because the two companies share similar heritages, company ideologies, and have a base of owners similarly passionate about their brands.
Just as Winnebago was greatly responsible for Americans’ love of the open road, Chris-Craft - perhaps more than any other marine brand - was responsible for America’s romance with boats. Chris-Craft has been building boats since the 19th-century; the company started in 1874 in Algonac, Michigan and became particularly known for its wood lake runabouts in the 1920s and 30s.
Like Winnebago, Chris-Craft developed a reputation over the years for its classic designs, quality, and craftsmanship. Both companies truly understand what talented carpenters, joiners, cabinetmakers, and artisans bring to their brands. Michael Happe said, “The legendary Chris-Craft brand shares many similarities with our own heritage and Winnebago flagship brand. Its strong brand; its high-quality product lines and premium position in the market make it a natural fit for us.”
Echoing virtually the same, Chris-Craft Chairman and Stellican Ltd. founding partner Stephen Julius said, “Winnebago is a natural fit for Chris-Craft’s premium brand, with a similarly iconic brand, complementary cultures, and a shared dedication to design, craftsmanship, quality, and customer service.”
Yet, there was more than just synergy driving the deal. If the acquisition didn’t make good business sense, it was doomed to fail. Winnebago obviously did their homework on the marine sector and foresaw ownership crossover opportunities.
Happe is confident about Chris-Craft’s revenue potential. He continues, “Chris-Craft marks Winnebago’s first entry into the marine market, which we believe has significant runway for growth, with a large and increasing population of current and new boaters who enjoy extraordinary experiences on the water,” adding, “The marine industry is growing as well and increasingly attracting new boaters.”
Plus, both companies are banking on sales stemming from ownership crossover - that is, those who enjoy the outdoors with recreational vehicles often become boat owners and vice versa. Happe commented, “We believe there will be synergies realized across our value chain...we see significant intersection between the RV and marine lifestyles and view marine as a natural adjacency to our existing outdoor lifestyle portfolio, with similar customer demographics and significant ownership crossover.”
Chris-Craft will continue to operate as a distinct business unit based out of its Sarasota, Florida home. The company continues to manufacture its seven boat lines: Capri, Carina, Corsair, Launch, Calypso, and Catalina with 18 models ranging in length from 21 to 38 feet. The network of 90 dealers across 50 countries will continue, although it's likely that the companies combined forces will expand that dealer network.
Chris-Craft president, Stephen Heese, said about the sale, “We look forward to further developing our storied brand while leveraging Winnebago’s capital and resources to accelerate our growth and continue delivering an exceptional product experience for our dealers and customers.”
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