TravelTiger
Founding Texas-West Chapter Leaders-Retired
<article class="field-body" style="box-sizing: border-box; color: rgb(0, 0, 0); font-family: "Open Sans", Helvetica, Arial, sans-serif; font-size: 16px;">[h=1]Grand Design Initially Sought Private Equity Partner[/h]
October 4, 2016
The pending $500 million stock-and-cash deal to acquire Grand Design began with the company’s ownership group seeking a replacement for its original private equity partner, according to Grand Design CEO Don Clark.
The original private equity deal backing the 5-year-old towables manufacturer had a definitive ending built in. The Grand Design founders group, consisting of Clark and brothers Ron and Bill Fenech, initially had hoped to find a new private equity backer and continue business as usual.
During their search, however, a new vision for the future of the company began to emerge, culminating in a deal that would sell the company to Winnebago and have it operate as an independent group under the Winnebago brand.
“We weren’t really looking for a strategic partner, but we got word about Winnebago, and Winnebago was intriguing,” Clark said. “Frankly, (Winnebago) was the only strategic partner that we would entertain.”
Clark did not disclose the date or circumstances of the original equity deal’s expiration, but said that he, along with co-founders Ron and Bill Fenech, began the search process early.
“Ron, Bill and I have always been the type that wants to get out in front of something and not just watch the clock tick away,” Clark said.
Though not originally seeking the acquisition, Clark said the group was open to a discussion with Winnebago because the companies share similar cultures and business values. He added that the group would not have entertained other RV industry offers.
“They’re such an iconic brand that everybody recognizes the name Winnebago. It’s almost synonymous with our industry and with motorhomes, specifically,” Clark said. “Two, they have a long-standing reputation for building with quality, great relationships with their dealers and a zest for customer satisfaction after the sell.”
As discussions with Winnebago advanced, the Grand Design group was further convinced when Winnebago executives spelled out a relationship between the two companies that would satisfy the Grand Design group’s original goal of obtaining capital and growing the young brand.
“In talks with them, they made it clear that Grand Design could operate as an independent unit within Winnebago Industries,” Clark said. “And with Winnebago, we would have a much bigger footprint in the industry, and that footprint can help survive and thrive during economic downturns.”
Still, the decision to hand off ownership of the company, which has expanded rapidly in its first five years, was not an easy one for the founders. But in the end, Clark said the group was confident that they’d made the best decision.
“It was very hard. The whole dialogue is that ... this is our baby and you want to keep it in safe hands,” he said. “We were very careful with it. We have 830-some employees we’re responsible to, and we were extremely careful about who we would talk to and who we would consider, and we’re confident that the Winnebago people are going to be great people to be aligned with in the coming years.”
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October 4, 2016
The pending $500 million stock-and-cash deal to acquire Grand Design began with the company’s ownership group seeking a replacement for its original private equity partner, according to Grand Design CEO Don Clark.
The original private equity deal backing the 5-year-old towables manufacturer had a definitive ending built in. The Grand Design founders group, consisting of Clark and brothers Ron and Bill Fenech, initially had hoped to find a new private equity backer and continue business as usual.
During their search, however, a new vision for the future of the company began to emerge, culminating in a deal that would sell the company to Winnebago and have it operate as an independent group under the Winnebago brand.
“We weren’t really looking for a strategic partner, but we got word about Winnebago, and Winnebago was intriguing,” Clark said. “Frankly, (Winnebago) was the only strategic partner that we would entertain.”
Clark did not disclose the date or circumstances of the original equity deal’s expiration, but said that he, along with co-founders Ron and Bill Fenech, began the search process early.
“Ron, Bill and I have always been the type that wants to get out in front of something and not just watch the clock tick away,” Clark said.
Though not originally seeking the acquisition, Clark said the group was open to a discussion with Winnebago because the companies share similar cultures and business values. He added that the group would not have entertained other RV industry offers.
“They’re such an iconic brand that everybody recognizes the name Winnebago. It’s almost synonymous with our industry and with motorhomes, specifically,” Clark said. “Two, they have a long-standing reputation for building with quality, great relationships with their dealers and a zest for customer satisfaction after the sell.”
As discussions with Winnebago advanced, the Grand Design group was further convinced when Winnebago executives spelled out a relationship between the two companies that would satisfy the Grand Design group’s original goal of obtaining capital and growing the young brand.
“In talks with them, they made it clear that Grand Design could operate as an independent unit within Winnebago Industries,” Clark said. “And with Winnebago, we would have a much bigger footprint in the industry, and that footprint can help survive and thrive during economic downturns.”
Still, the decision to hand off ownership of the company, which has expanded rapidly in its first five years, was not an easy one for the founders. But in the end, Clark said the group was confident that they’d made the best decision.
“It was very hard. The whole dialogue is that ... this is our baby and you want to keep it in safe hands,” he said. “We were very careful with it. We have 830-some employees we’re responsible to, and we were extremely careful about who we would talk to and who we would consider, and we’re confident that the Winnebago people are going to be great people to be aligned with in the coming years.”
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