ELKHART, Ind., Oct. 1, 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 West Columbia, South Carolina-based Engineered
Metals and Composites, Inc. ("EMC"), a designer and manufacturer of
custom marine towers, frames, and other fabricated component
products for OEMs in the marine industry. EMC's trailing
12-months revenue through August 2018
was approximately $16 million and the
Company expects the acquisition to be immediately accretive to net
income per share.
"EMC's technical expertise and innovative product offerings
complement our marine product portfolio, and provide us with an
excellent opportunity to further penetrate the marine market,
increase our content per unit, and leverage our existing
capabilities within our marine-centric brands," said Todd Cleveland, Chairman and Chief Executive
Officer of Patrick. "This
acquisition is aligned with our strategic initiatives and capital
allocation strategy and we look forward to working with the EMC
team to help further drive brand value."
"We believe the marine industry is well-positioned for continued
growth and we are excited to partner with Ed Forbes, Chris
Wainscott, and the EMC team to further expand our presence
as a key component supplier in this space through high-quality,
innovative custom product solutions and excellent customer
service," said Andy Nemeth,
President of Patrick. "EMC's
industry reputation for metallurgical expertise, highly engineered
processes and products, and continuous innovation and product
quality, as well as its longstanding relationships with leading
marine OEM customers, has been instrumental in expanding its
customer base within the recreational boating market. Consistent
with previous acquisitions, we will support EMC 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."
Ed Forbes, Founder and Chief
Executive Officer of EMC, said, "After more than 35 years in the
marine industry, I am excited to partner with Patrick, to further drive and support the EMC
team and our plans for continued growth. Patrick's strategic
resources and marine industry presence, capabilities, and vision
align with our goal of providing the highest quality innovative
solutions to our customers."
The acquisition of EMC includes 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 EMC 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 in various locations throughout
the United States and in
China and The Netherlands. 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, boat covers, towers, tops and frames, 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, appliances,
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, in
addition to providing transportation and logistics services.
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, 2017, 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.