Mobile-home maker Winnebago is surging after buying a competitor for $500 million
In the release announcing the move, Winnebago notes that Grand Design had revenue of $428 million in the twelve months ending in August. Grand Design is a private company and Winnebago will pay $395 million in cash and $105 million in stock. The combined firm is estimated to generate $1.4 billion in annual revenue, according to the release.
"Grand Design has built a tremendous reputation and position in our industry by delivering quality products and high levels of customer satisfaction, and we are excited to welcome them to the Winnebago family," said Winnebago CEO Michael Happe in the release announcing the move.
JPMorgan will help Winnebago finance the deal.
Following the news, Winnebago stock soared. As of 10:06 a.m. ET, the stock was up over 20% to $28.32 per share.