LCI Industries (NYSE: LCII) announced that its wholly-owned
subsidiary Lippert Components, Inc. ("LCI"), a supplier of a broad
array of highly engineered components for the leading original
equipment manufacturers ("OEMs") of leisure vehicles and mobile
transportation, and the related aftermarkets of those industries,
has reached an agreement with the board of directors of Lewmar
Marine Limited ("Lewmar"), a supplier of leisure marine equipment,
headquartered in Havant, United Kingdom, on the terms of a
recommended cash offer for Lewmar by LCI, pursuant to which LCI
would acquire the entire share capital of Lewmar. LCI's offer will
be presented to Lewmar's shareholders and, as required by Scottish
law, the Scottish Court for approval. Sales of the
soon-to-be-acquired business for the twelve months ending December
2018 were approximately £55 million. LCI's initial cash offer is
approximately £33.286 million, or approximately 143.65 pence per
share, and allows for additional consideration up to £2.5 million,
or approximately 10.79 pence per share. At the time of
announcement, LCI has received pledges from Lewmar shareholders
representing approximately 80.7% of existing shares to vote in
favor of the acquisition. LCI plans to close on the transaction
upon approval by the shareholders and Scottish Court.
Founded in 1946, Lewmar has grown to be one of the world's
premier suppliers of leisure marine equipment for yachts,
sailboats, and powerboats. Lewmar designs, manufactures, and
distributes a wide range of components including anchoring systems,
hatch and portlight solutions, powered and manual glazing systems,
sail control winches and hardware, decking products, and steering
systems. Besides their headquarters in the UK, Lewmar also operates
a sales and distribution facility in Guilford, Connecticut. The
boards of LCI and Lewmar believe that the acquisition would bolster
both company's respective end markets, product offerings,
manufacturing capabilities, as well as geographic reach, helping to
serve customers better.
Peter Tierney, Managing Director of Lewmar, commented, "This is
an exciting opportunity for Lewmar and represents the best
strategic option for Lewmar and its employees. The acquisition
fairly reflects Lewmar's current market position and prospects, and
as such, Lewmar Shareholders should be given the opportunity to
realize value from this acquisition."
"Lewmar is a highly respected brand within the global leisure
marine industry with a strong and well-regarded leadership team,"
said Jason Falk, VP of Mergers and Acquisitions for LCI. Falk
continued, "I have enjoyed getting to know the Lewmar team through
the acquisition process and believe that they align with LCI’s core
values, which is something that we strongly consider when making
any acquisition. We believe that the integration of Lewmar will be
well organized and will achieve great synergies. Following
completion of the acquisition, Peter Tierney will have managerial
responsibility for both the Lewmar and Trend UK businesses."
"The marine industry has been a continued target of growth for
LCI, and with the acquisition of Lewmar, we are expanding this
strategy to a global level," said Jason Lippert, CEO &
President of LCI. Continued Lippert, "This is our sixth acquisition
within the global leisure marine market, as well as our sixth
acquisition in Europe. All of this points to our strategy to be a
significant player in the global marine, rail, and caravan markets
domestically and in Europe. LCI's capabilities and experience play
well into Lewmar's market. I have the utmost trust in Peter to grow
and lead this business in Europe. I am really excited to see the
positive effect that our combined leadership team will have on our
global marine efforts."
About LCI Industries
From over 65 manufacturing and distribution facilities located
throughout the United States and in Canada, Ireland, Italy, and the
United Kingdom, LCI Industries, through its wholly-owned
subsidiary, LCI, supplies, domestically and internationally, a
broad array of engineered components for the leading OEMs in the
recreation and industrial product markets, consisting of
recreational vehicles and adjacent industries, including buses;
trailers used to haul boats, livestock, equipment, and other cargo;
trucks; 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; entry,
luggage, patio, and ramp doors; furniture and mattresses; electric
and manual entry steps; awnings and awning accessories; electronic
components; appliances; televisions, sound systems, navigation
systems, and backup cameras; 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, markets for the Company’s common stock,
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, net sales, expenses and
income (loss), cash flow, and financial condition, 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, 2018, 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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version on businesswire.com: https://www.businesswire.com/news/home/20190611005986/en/
Contact: Brian M. Hall, CFOPhone: (574)
535-1125E Mail: LCII@lci1.com
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