ELKHART, Ind., March 20, 2017 /PRNewswire/ -- Patrick
Industries, Inc. (NASDAQ: PATK) ("Patrick" or the "Company")
announced today that it has completed the acquisition of the
business and certain assets of Medallion Plastics, Inc.
("Medallion") and has expanded the size and extended the maturity
date of its existing credit facility.
Medallion, located in Elkhart,
Indiana, is a designer, engineer and manufacturer of custom
thermoformed products and components which include dash and trim
panels and fender skirts for the RV market, and complete interior
packages, bumper covers, hoods, and trims for the automotive,
specialty transportation and other industrial markets.
Medallion's fiscal 2016 revenue was approximately
$20 million. The total cash
consideration paid for Medallion was approximately $10 million, and the Company expects the
acquisition to be immediately accretive to net income per
share.
"Medallion is recognized as a high quality designer and
manufacturer of a wide array of innovative custom thermoformed
plastic components and its flexible manufacturing process allows it
to produce virtually any thermoformed component to meet its
customers' needs," said Todd
Cleveland, CEO of Patrick. "This acquisition represents a
continued growth opportunity in combination with Patrick's current
thermoforming portfolio of companies and will allow us to
capitalize on product synergies in adjacent markets."
"Medallion's high quality product lines, vast product
engineering capabilities, technical expertise, and custom molds and
tooling provide us with the opportunity to continue to drive our
business model through expansion into other industrial markets, as
well as further increase our RV content per unit," said
Andy Nemeth, President of
Patrick. "Consistent with previous acquisitions, we will
support Medallion with a financial and operational foundation that
will allow it to capitalize on its core competencies while
preserving the entrepreneurial spirit that has been so important to
its success."
Bob Toth, President of Medallion,
said, "After more than 40 years in business, our exceptional team
is excited to partner with the Patrick organization whose strong
focus on customer service coupled with our technology and
manufacturing processes in the markets we serve will help further
grow the Medallion brand. Patrick is a natural fit for our
operation as we are poised to achieve the next level in our
strategic growth plan."
The acquisition of Medallion included the acquisition of
accounts receivable, inventory, prepaid expenses, and machinery and
equipment, and was funded under the Company's existing credit
facility. Patrick will continue to operate the business on a
stand-alone basis under the Medallion brand name in its four
existing facilities.
Credit Facility Expansion
Separately, the Company entered into a third amendment to its
credit agreement, dated March 17,
2017, to expand its credit facility to $450 million from $360
million. In addition, the maturity date for the credit
facility was extended to March 17,
2022 from April 28,
2020.
"We are very appreciative of the continued support and
confidence shown by our banking partners. The increase in our
credit facility capacity, coupled with our recent equity offering,
provides us with a strong financial foundation to continue to
execute on our long-term strategic growth plan and capital
allocation strategy and drive both organic and acquisition-related
growth initiatives," stated Mr. Nemeth.
Patrick Industries, Inc.
Patrick Industries, Inc. is a major manufacturer of component
products and distributor of building products serving the
recreational vehicle, manufactured housing, kitchen cabinet, office
and household furniture, fixtures and commercial furnishings,
marine, and other industrial markets and operates coast-to-coast
through locations in 16 states. Patrick's major manufactured
products include decorative vinyl and paper laminated panels,
countertops, fabricated aluminum products, wrapped profile
mouldings, slide-out trim and fascia, cabinet doors and components,
hardwood furniture, fiberglass bath fixtures, fiberglass and
plastic component products, electrical systems components,
softwoods lumber, interior passage doors, RV painting, and slotwall
panels and components. The Company also distributes drywall and
drywall finishing products, electronics and audio systems
components, wiring, electrical and plumbing products, cement
siding, raw and processed lumber, FRP products, interior passage
doors, roofing products, laminate and ceramic flooring, shower
doors, furniture, fireplaces and surrounds, interior and exterior
lighting products, and other miscellaneous products.
Cautionary Statement Regarding Forward-Looking
Statements
This press release contains certain statements related to future
results, our intentions, beliefs and expectations or predictions
for the future, which are forward-looking statements as that term
is defined in the Private Securities Litigation Reform Act of 1995.
These forward-looking statements involve a number of risks and
uncertainties that could cause actual results to differ materially
from either historical or anticipated results depending on a
variety of factors. Potential factors that could impact results
include: the impact of any economic downturns especially in the
residential housing market, a decline in consumer confidence
levels, pricing pressures due to competition, costs and
availability of raw materials, the imposition of restrictions and
taxes on imports of raw materials and components used in our
products, information technology performance and security, the
availability of commercial credit, the availability of retail and
wholesale financing for residential and manufactured homes, the
availability and costs of labor, inventory levels of retailers and
manufacturers, the financial condition of our customers, retention
and concentration of significant customers, the ability to generate
cash flow or obtain financing to fund growth, future growth rates
in the Company's core businesses, the seasonality and cyclicality
in the industries to which our products are sold, realization and
impact of efficiency improvements and cost reductions, the
successful integration of acquisitions and other growth
initiatives, increases in interest rates and oil and gasoline
prices, adverse weather conditions impacting retail sales, our
ability to remain in compliance with our credit agreement
covenants, and general economic, market and political conditions.
In addition, national and regional economic conditions may affect
the retail sale of recreational vehicles and residential and
manufactured housing. The Company does not undertake to update
forward-looking statements, except as required by law. Further
information regarding these and other risks, uncertainties and
factors is contained in the section entitled "Risk Factors" in the
Company's Annual Report on Form 10-K for the year ended
December 31, 2016, and in the
Company's Form 10-Qs for subsequent quarterly periods, which are
filed with the Securities and Exchange Commission ("SEC") and are
available on the SEC's website at www.sec.gov.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/patrick-industries-inc-completes-acquisition-of-medallion-plastics-inc-and-announces-expansion-of-existing-credit-facility-300426012.html
SOURCE Patrick Industries, Inc.