Winnebago Industries to Acquire Premier Lithium-ion Battery Solutions Provider Lithionics Battery
March 27 2023 - 7:00AM
Winnebago Industries, Inc. (NYSE: WGO), a leading outdoor lifestyle
product manufacturer, today announced that it has reached a
definitive agreement to acquire Lithionics Battery (“Lithionics”),
a lithium-ion battery solutions provider to recreational equipment
and specialty vehicle markets. The addition of Lithionics will
provide Winnebago Industries with enhanced technological and
engineering capabilities to offer consumers more differentiated
products with innovative electrical solutions, as well as bring
strategic sourcing benefits and secure a critical area of its
supply chain. Terms of the deal were not disclosed.
Founded in 2010, Lithionics is a provider of advanced battery
solutions that deliver “house power,” supporting internal
electrical features and appliances for a variety of outdoor
products including RVs, boats, specialty and other low-speed
vehicles, as well as other industrial applications. Lithionics’
innovation in house power solutions will continue to advance
important outdoor recreation product features for consumers,
including extending time off-the-grid, improving reliability,
reducing noise and generating fewer emissions.
Lithionics’ premium lithium-ion batteries leverage voltage
stability, long life expectancy, lighter construction and the
highest energy densities possible to provide safe, efficient and
cost-effective electrification solutions. The company’s
best-in-class battery technology is differentiated by its
proprietary management software and certifications from
Underwriters Laboratories Solutions (“UL”), a leader in safety
accreditation and testing. Lithionics currently serves a critical
role in the supply chains of Winnebago Industries’ RV brands,
providing trusted battery solutions to Winnebago and Newmar.
Lithionics is led by Founder and CEO Steve Tartaglia and is
headquartered in Clearwater, Florida.
“The addition of Lithionics enhances Winnebago Industries’
ability to develop unique and diverse battery solutions across our
portfolio, advancing our overall electrical ecosystem, driving
organic growth and supply chain security, reinforcing our
technological competitive advantage and allowing us to capitalize
on consumer preferences for fully immersive, off-the-grid outdoor
experiences,” said Winnebago Industries President and Chief
Executive Officer Michael Happe. “Lithionics’ talented employees
bring a unique familiarity with our business and the broader
outdoor recreation space, as well as share a commitment to quality
and safety that fits seamlessly with our culture of excellence. We
see significant opportunity to expand the use of their efficient
energy solutions within our own portfolio, to continue to grow
relationships with other existing customers and to explore new
market applications. Through these applications, we expect
Lithionics will enhance Winnebago Industries’ margin profile over
the near- and long-term and create value for our shareholders,
employees and consumers. We look forward to working with Steve and
his team to integrate their unique platform of electrical
capabilities.”
Steve Tartaglia added, “By combining Lithionics’ differentiated
battery systems and Winnebago Industries’ strong brands and
innovation expertise, we will create a range of technologically
superior products that will change the way people experience the
outdoors – allowing them to bring the comfort of electricity with
them wherever they travel. The entire team at Lithionics looks
forward to joining forces with Winnebago Industries to turn this
vision into reality.”
After the transaction closes, which is expected within Winnebago
Industries’ third fiscal quarter, subject to customary closing
conditions, Mr. Tartaglia and the current Lithionics management
team will continue to lead the business from its headquarters in
Clearwater, Florida. Lithionics will operate as a wholly owned
subsidiary of Winnebago Industries.
J.P. Morgan Securities LLC is serving as exclusive financial
advisor to Winnebago Industries and Faegre Drinker Biddle &
Reath is serving as legal advisor.
About Winnebago IndustriesWinnebago Industries, Inc. is a
leading North American manufacturer of outdoor lifestyle products
under the Winnebago, Grand Design, Chris-Craft, Newmar and Barletta
brands, which are used primarily in leisure travel and outdoor
recreation activities. The Company builds quality motorhomes,
travel trailers, fifth-wheel products, outboard and sterndrive
powerboats, pontoons and commercial community outreach vehicles.
Winnebago Industries has multiple facilities in Iowa, Indiana,
Minnesota and Florida. The Company's common stock is listed on the
New York Stock Exchange and traded under the symbol WGO. For access
to Winnebago Industries' investor relations material or to add your
name to an automatic email list for Company news releases, visit
http://investor.wgo.net.
About Lithionics BatteryLithionics Battery is a leading provider
of lithium-ion batteries to the recreational equipment and
specialty vehicle markets. Using a proprietary Battery Management
System called NeverDie® Technology, it offers a broad range of
standard and custom-designed battery configurations delivering
“house power,” supporting internal electrical features and
appliances for a variety of outdoor products for the marine and
recreational vehicle markets. Other markets served include both
house power and traction power for low-speed electric vehicle
markets, as well as cell towers and industrial applications
requiring ruggedized power systems. Lithionics Battery operates a
modern factory using technology that was designed and built
in-house for advanced assembly. Key proprietary technologies
include source code and firmware that in turn has created unique
quality assurance and safety testing systems, validated by
certifications from Underwriters Laboratories Solutions (“UL”), a
leader in safety accreditation and testing. Lithionics Battery was
founded in 2010 and is headquartered in Clearwater, Florida.
Forward-Looking StatementsThis press release contains
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Investors are cautioned
that forward-looking statements are inherently uncertain and
involve potential risks and uncertainties. A number of factors
could cause actual results to differ materially from these
statements, including, but not limited to risks relating to the
Company’s proposed acquisition of Lithionics Battery, including the
possibility that the closing conditions to the contemplated
transaction may not be satisfied or waived; delay in closing the
transaction or the possibility of non-consummation of the
transaction; the occurrence of any event that could give rise to
termination of the purchase agreement; risks inherent in the
achievement of expected financial results; risks that the efforts
to consummate the transaction may be disruptive to the Company or
Lithionics Battery or their respective management teams; the effect
of announcing the transaction on Lithionics Battery’s ability to
retain and hire key personnel and maintain relationships with
customers, suppliers and other third parties; risks related to
integration of the two companies and other factors. Additional
information concerning other risks and uncertainties that could
cause actual results to differ materially from that projected or
suggested is contained in the Company's filings with
the Securities and Exchange Commission (SEC) over the
last 12 months, copies of which are available from
the SEC or from the Company upon request. The Company
disclaims any obligation or undertaking to disseminate any updates
or revisions to any forward-looking statements contained in this
press release or to reflect any changes in the Company's
expectations after the date of this press release or any change in
events, conditions or circumstances on which any statement is
based, except as required by law.
ContactsInvestors: Ray Posadasir@winnebagoind.com
Media: Daniel Sullivanmedia@winnebagoind.com
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