MIDDLEBURY -- Another independently owned Elkhart County RV maker likely will be gobbled up by a larger manufacturer as consolidation continues in the industry.
Winnebago Industries, the motorhome giant whose name is synonymous with recreational vehicles, announced Monday its intent to acquire SunnyBrook Manufacturing in Middlebury. The Iowa-based company has signed a letter of intent indicating its interest in making the purchase.
Neither manufacturer would comment about the potential transaction beyond the notice filed with the U.S. Securities and Exchange Commission.
"On the surface, it appears to be nothing more than a motorhome manufacturer moving into the towable segment," said Mark Bowersox, executive director of the Recreation Vehicle Indiana Council. "If motorhomes were hot, I don't think they'd be going into the towable market."
Travel trailers and fifth wheels have been leading the recovery of the recreational vehicle industry in 2010. Of the 177,300 RVs shipped through August, 159,600 have been towables.
SunnyBrook produces a variety of travel trailers and fifth wheels under the SunnyBrook RV brand name.
Winnebago has started the due diligence process to formally assess SunnyBrook, according to the announcement. The company anticipates the evaluation process and acquisition will be completed by the end of 2010.
Bowersox said he is not surprised by the announcement because both companies have solid reputations for building quality products. He does not expect that Winnebago would move the operation from Middlebury.
Consolidation is part of the cyclical nature of the RV industry that is not a consequence of the struggling economy, Bowersox said.
In September, Thor Industries acquired Heartland Recreational Vehicles for more than $200 million in stock and cash.
Headquartered in Forest City, Iowa, Winnebago started as a towable maker in 1958 but has been producing motorhomes exclusively for several decades, according to the company. It also does not have any plants nor hold any interest in any Indiana-based companies.
Winnebago reported fiscal year 2010 income of $10.2 million, versus a loss in fiscal year 2009 of $78.8 million.