ELKHART, Ind., May 22, 2017 /PRNewswire/ -- LCI Industries
(NYSE: LCII), a supplier of components for the leading original
equipment manufacturers ("OEMs") of recreational vehicles ("RVs")
and adjacent industries, and the related aftermarkets of those
industries, today announced that its wholly-owned subsidiary,
Lippert Components, Inc. ("LCI®"), has acquired the
business and certain assets of Lexington, LLC ("Lexington"). Headquartered in Elkhart, Indiana, Lexington manufactures high quality seating
solutions for the marine, RV, transportation, medical and office
furniture industries. Sales of the acquired business for the twelve
months ending December 2017 are
anticipated to be approximately $60
million.
"We are excited to add Lexington's business and employees to our
growing portfolio of furniture solutions for the marine, RV and
adjacent industries," said LCI's President Scott Mereness. "LCI is the leading
provider of furniture solutions for the RV towable industry, and
with the addition of Lexington's
high quality products, design and manufacturing teams, and strong
customer relationships, the leading supplier of pontoon furniture
as well."
The purchase price was $40.0
million, which was paid at closing from available cash and
borrowings under the Company's $200
million line of credit. After funding this
acquisition, LCI remains well-positioned to take advantage of other
investment opportunities.
Jeff Wysong, President of
Lexington, will remain with LCI to
lead the acquired business under the direction of Ryan Smith, Vice President of Lippert Interiors.
"LCI is a great strategic fit for our company as well as our
customers, and I am excited to be a part of their dynamic
team. LCI has vast resources and great teams that will
certainly help strengthen Lexington as we combine with LCI's marine
divisions to offer even better solutions to the marine market and
its customers."
"Our combined marine furniture team is talented and innovative,
as well as experienced in managing growth," added Jason Lippert, LCI's Chief Executive Officer.
"Lexington is our largest
acquisition in the past 20 years, and is representative of our
strategy of quickly assembling a portfolio of companies and
products that will help us become a major contributor to marine
component designs and solutions. We expect to leverage our
purchasing, sales, distribution and administrative capabilities to
improve the profitability of this business, and we expect this
acquisition to be immediately accretive to LCI's earnings."
About LCI Industries
From 50 manufacturing and distribution facilities located
throughout the United States and
in Canada and Italy, LCI Industries, through its
wholly-owned subsidiary, Lippert Components, Inc.,
supplies, domestically and internationally, a broad array of
components for the leading original equipment manufacturers of
recreational vehicles; buses; trailers used to haul boats,
livestock, equipment and other cargo; trucks; pontoon boats;
trains; manufactured homes; and modular housing. The Company also
supplies components to the related aftermarkets of these industries
primarily by selling to retail dealers, wholesale distributors and
service centers. LCI's products include steel chassis and related
components; axles and suspension solutions; slide-out mechanisms
and solutions; thermoformed bath, kitchen and other products;
vinyl, aluminum and frameless windows; manual, electric and
hydraulic stabilizer and leveling systems; furniture and
mattresses; entry, luggage, patio and ramp doors; electric and
manual entry steps; awnings and awning accessories; electronic
components; televisions and sound systems; navigation systems;
backup cameras; appliances; and other accessories. Additional
information about LCI and its products can be found at
www.lci1.com.
Forward-Looking Statements
This press release contains certain "forward-looking statements"
with respect to our financial condition, results of operations,
business strategies, operating efficiencies or synergies,
competitive position, growth opportunities, acquisitions, plans and
objectives of management and other matters. Statements in this
press release that are not historical facts are "forward-looking
statements" for the purpose of the safe harbor provided by Section
21E of the Securities Exchange Act of 1934, as amended, and Section
27A of the Securities Act of 1933, as amended, and involve a number
of risks and uncertainties.
Forward-looking statements, including, without limitation, those
relating to our future business prospects resulting from
acquisitions, whenever they occur in this press release are
necessarily estimates reflecting the best judgment of the Company's
senior management at the time such statements were made. There are
a number of factors, many of which are beyond the Company's
control, which could cause actual results and events to differ
materially from those described in the forward-looking statements.
These factors include, in addition to other matters described in
this press release, pricing pressures due to domestic and foreign
competition, costs and availability of raw materials (particularly
steel and aluminum) and other components, seasonality and
cyclicality in the industries to which we sell our products,
availability of credit for financing the retail and wholesale
purchase of products for which we sell our components, inventory
levels of retail dealers and manufacturers, availability of
transportation for products for which we sell our components, the
financial condition of our customers, the financial condition of
retail dealers of products for which we sell our components,
retention and concentration of significant customers, the costs,
pace of and successful integration of acquisitions and other growth
initiatives, availability and costs of production facilities and
labor, employee benefits, employee retention, realization and
impact of expansion plans, efficiency improvements and cost
reductions, the disruption of business resulting from natural
disasters or other unforeseen events, the successful entry into new
markets, the costs of compliance with environmental laws, laws of
foreign jurisdictions in which we operate, and increased
governmental regulation and oversight, information technology
performance and security, the ability to protect intellectual
property, warranty and product liability claims or product recalls,
interest rates, oil and gasoline prices, the impact of
international, national and regional economic conditions and
consumer confidence on the retail sale of products for which we
sell our components, and other risks and uncertainties discussed
more fully under the caption "Risk Factors" in the Company's Annual
Report on Form 10-K for the year ended December 31, 2016, and in the Company's
subsequent filings with the Securities and Exchange Commission. The
Company disclaims any obligation or undertaking to update
forward-looking statements to reflect circumstances or events that
occur after the date the forward-looking statements are made,
except as required by law.
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SOURCE LCI Industries