ELKHART, Ind., Feb. 20, 2018 /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 Madison, Tennessee-based
Metal Moulding Corporation ("MMC"), a manufacturer of custom metal
fabricated products, primarily for the marine market, including
hinges, arm rests, brackets, panels and trim, as well as plastic products including boxes, inlay
tables, steps, and related components. MMC's full-year 2017
revenues were approximately $19
million. The total cash consideration paid was approximately
$20 million, plus the potential for
up to $2 million of additional
consideration upon the achievement of certain performance metrics.
The Company expects the acquisition to be immediately accretive to
net income per share.
"This acquisition is well-aligned with our strategic initiatives
and capital allocation strategy to continue to grow our content in
the primary markets we serve," said Todd
Cleveland, Chief Executive Officer of Patrick. "MMC is a
high-quality custom fabricator of a variety of metal and plastic products to OEMs in the marine industry,
and their product offering complements our existing metal
fabrication expertise and product portfolio."
"MMC's custom design, engineering, manufacturing, fabrication,
and powder coat capabilities, coupled with their tremendous
long-standing reputation and comprehensive suite of component
products, will position us to further expand our presence in the
growing marine market," said Andy
Nemeth, President of Patrick. "Consistent with previous
acquisitions, we will support MMC 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."
Jimmy Parrish, founder and
President of MMC, said, "After more than 30 years in business, we
are excited to partner with Patrick whose vast portfolio of
products, resources, and customer first approach will help to
further grow the MMC brand and bring a variety of value added
solutions to our customers and markets. We feel that Patrick is a
great fit for our team and we are poised to continue to grow our
business, customer relationships, and brand platform."
The acquisition of MMC 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 MMC 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
mouldings, 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.