ELKHART, Ind., Dec. 11, 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 Elkhart, Indiana-based
Nickell Moulding Company, Inc. ("Nickell"), a custom manufacturer
of hardwood and wrapped mouldings and trim, custom wood frames, and
door components for the recreational vehicle ("RV"), retail and
hospitality, manufactured housing ("MH"), and other markets.
The Company projects Nickell's full-year 2017 revenues to be
approximately $21 million. The total
cash consideration paid was approximately $11 million and the Company expects the
acquisition to be immediately accretive to 2017 net income per
share.
"Nickell's position as a high-quality national supplier of
custom mouldings and frames complements our existing hardwoods
expertise and product offerings, providing us with the opportunity
to increase our RV and MH content per unit and leverage our
capabilities in three of our core markets," said Todd Cleveland, Chief Executive Officer of
Patrick. "Nickell is an excellent fit with our entrepreneurial
brand philosophy and this acquisition is well-aligned with our
strategic initiatives and capital allocation strategy."
"Nickell has continually invested in technology to stay at the
forefront of process and quality improvement, and is well-known for
its state-of-the-art design and custom manufacturing capabilities
and excellent customer and supplier relationships," said
Andy Nemeth, President of Patrick.
"Consistent with previous acquisitions, we will support Nickell
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."
George Nickell, founder and
President of Nickell, said, "After more than 36 years in business,
we look forward to partnering with Patrick which is a natural fit
with our value proposition to the various markets we serve.
Our team is energized to continue to drive the business model to
further expand our presence and grow our market share."
The acquisition of Nickell included the acquisition of accounts
receivable, inventory, and machinery and equipment, and was funded
under the Company's existing credit facility. Patrick will
continue to operate Nickell on a stand-alone basis under its brand
name in its existing facility.
Patrick Industries, Inc.
Patrick Industries, Inc. is a major manufacturer of component
products and distributor of building products serving the
recreational vehicle, manufactured housing, marine, kitchen
cabinet, office and household furniture, fixtures and commercial
furnishings, and other industrial markets and operates
coast-to-coast through locations in 20 states and in China. Patrick's major manufactured products
include decorative vinyl and paper laminated panels, countertops,
fabricated aluminum products, wrapped profile moldings, slide-out
trim and fascia, cabinet doors and components, hardwood furniture,
fiberglass bath fixtures and tile systems, thermoformed shower
surrounds, specialty bath and closet building products, fiberglass
and plastic helm systems and component products, wiring and wire
harnesses, electrical systems components including instrument and
dash panels, softwoods lumber, interior passage doors, RV painting,
slotwall panels and components, aluminum fuel tanks, and CNC molds
and composite parts and other products. 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.
Any projections of financial performance or statements concerning
expectations as to future developments should not be construed in
any manner as a guarantee that such results or developments will,
in fact, occur. There can be no assurance that any forward-looking
statement will be realized or that actual results will not be
significantly different from that set forth in such forward-looking
statement. The Company does not undertake to publicly update or
revise any forward-looking statements except as required by law.
Factors that may affect the Company's operations and prospects are
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.
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SOURCE Patrick Industries, Inc.