More RVs That Float. Really.

When I had posted that Winnebago had purchased Chris Craft, a boating company, I tossed out a joke that Winnebago was about to make RVs that float.

Turns out that somebody has already done that.

There’s something just not right about a floating RV.

RVs That Float

Interesting news release from Winnebago:

Winnebago Industries, Inc. (NYSE:WGO), a leading outdoor lifestyle product manufacturer, today announced that it has acquired Chris-Craft, an iconic recreational boat builder, from Stellican Ltd., which has owned Chris-Craft since 2001. Terms of the transaction were not disclosed.

With a brand heritage that dates back to 1874, Chris-Craft is an industry leader in recreational boating craftsmanship and quality. The business is poised to leverage its strong brand reputation and drive future growth through the introduction of new models and product lines, category extension opportunities supported by increased production capacity and expanded dealer reach.

“Chris-Craft is an iconic, premium brand that shares many similarities with our own heritage Winnebago brand, including a commitment to providing customers with the highest quality products and services,” said Winnebago Industries President and Chief Executive Officer, Michael Happe. “The company’s strong brand, high-quality product line and premium position in the marine market make Chris-Craft an attractive addition to our portfolio. 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.”

Mr. Happe continued, “Importantly, this acquisition aligns with our strategic initiative to further diversify Winnebago Industries within the outdoor lifestyle market and gives us a strong base on which to build an additional revenue platform over time. We believe there will be synergies realized across our value chain and that the Chris-Craft business has material expansion opportunities available. Additionally, 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 ownerhip crossover. With a broader, more balanced portfolio of products uniquely positioned across the outdoor lifestyle and leisure travel industries, we expect to continue to drive improved profitability and shareholder value over the long term. I look forward to working with the talented Chris-Craft team and to welcoming them to the Winnebago family.”

“I am delighted that Chris-Craft has found an ideal partner in Winnebago Industries,” added Chris-Craft Chairman and Stellican Ltd. Founding Partner, Stephen Julius. “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.”

Financial details about the deal are limited although Winnebago made the following observations to their investors:

  • Undisclosed transaction value, expected to be paid with cash on hand and debt
  • Provides platform to drive expanded revenue growth opportunities
  • Transaction expected to be immediately accretive to fiscal 2019 EPS
  • Continue to expect to reach our goal of 1.5x or lower Debt-to-EBITDA by end-Fiscal 2018

Interesting to see an RV manufacturer diversify this way. Chris Craft is primarily focused on outboard and sterndrive boats although they do offer one cruiser, the Commander. Perhaps Winnebago intends to go further upscale and leverage common components in systems that tend to crossover between RVs and marine. They do note in the investor material that Chris-Craft’s current focus is primarily on 21-38’ boats. And that 90% of all boats sold in the U.S. are < 25’.

Double Decker RV

I’m not sure why, but I watched this one right through to the end.

An amazing and unique build. Not with some surprises though. Especially the engine.

Swift Kon-Tiki

I am on numerous RV mailing lists and from all over the world. One of them, Caravan Guard, an insurance company in the UK, passed me some information on Swift caravans.

The Swift Kon-Tiki, pictured above, is a motorhome manufactured for the European market. The design of this motorhome, quite compact relative to the 40+ foot motorcoaches in North America, blends luxury with intelligent use of space. Interesting to see the differences in design.

Here is one of the floorplans for this model:

The coach is 28-feet in length and a bit over 7 and a half feet wide. There are no slideouts. They have managed to create a comfortable design, especially suited to a couple, which provides all of the essential elements of a motorhome.

The main living area:

Great use of colour and window layouts. And the main living area seems open especially given the tight constraint of space.

The bedroom:

The kitchen:

And the washroom:

The Swift Kon-Tiki is built on a Fiat Chassis, powered by a 150bhp, 2.3 litre engine. All of the technical details on the coach can be found here towards the bottom of the page.

Swift is the largest manufacturer of RVs in the UK and it has been in business for 50 years. Really love the European design touches.

Armadillo Trailer Manufacturing

This photo, from the Armadillo Trailer Manufacturing website, highlights the trend of very small, very lightweight, and affordable trailers for the RV market.

Based out of British Columbia, Canada, Armadillo has been in the RV repair and manufacturing business for over 45 years.

They clearly have a passion for the classic trailers of yesterday: Airstream, Boler, L’il Bigfoot to name a few.

Here is a shot of the original Boler from 1968:

It looks very similar to the Armadillo.

This video provides a walkthrough of the Armadillo, which, from the manufacturer’s perspective is similar to the Boler but better, new and improved.