LCI Industries (NYSE: LCII) (the “Company”) today announced that
its wholly-owned subsidiary, Lippert Components, Inc. (“Lippert”),
a supplier of a broad array of highly engineered components for the
leading original equipment manufacturers (“OEMs”) in the recreation
and transportation product markets, and the related aftermarkets of
those industries, has entered into a definitive agreement to
acquire Furrion Holdings Limited (“Furrion”), a leading distributor
of a large range of appliances and other products to OEMs and
aftermarket customers in the recreational vehicle, specialty
vehicle, utility trailer, horse trailer, marine, transit bus, and
school bus industries. Furrion’s forecasted 2021 sales are
approximately $230 million. The transaction is expected to close in
the third quarter of this year, subject to customary closing
conditions, including regulatory approval.
“We are very excited to welcome Furrion to the Lippert family,”
said Jason Lippert, President and CEO of Lippert. “Our
organizations got to know each other very well during our
partnership in which Lippert sold Furrion appliances and electronic
products to OEMs and aftermarket customers throughout the United
States and Canada. Furrion has a strong management team led by CEO
Darren Ho and Chief Technology Officer Steve Bell, along with
Furrion’s innovative R&D and engineering teams in Hong Kong,
the United States, and mainland China. I believe the two companies
can do great things together, and I look forward to seeing how we
can innovate products to transform the industries we serve.”
With headquarters in Hong Kong, China, and Elkhart, Indiana,
Furrion has become a premier supplier of appliance, appliance
accessories, and audio-visual products since entering the RV
industry in 2007 and is best known for innovating new appliance
products and introducing state-of-the-art camera technology.
Furrion’s robust catalog of electronics and appliances complement
Lippert’s OEM product roadmap by adding audio-visual components,
observation camera systems, a full range of kitchen appliances, and
energy and power management systems that will allow Lippert to
offer an even-more widespread range of products to the industry. In
addition to supplying OEMs, Furrion has a strong aftermarket
business, both online and in-store, contributing over 30% of its
revenues, and Furrion's products are featured in many RV
dealerships across the United States. Lippert’s plan is to use its
existing relationships to expand Furrion’s distribution of products
into its sales channels, including RV, marine, Europe, and adjacent
industries, as well as the aftermarkets of those industries.
Ryan Smith, Group President – North America for Lippert,
commented, “Our sales and management teams on both the OEM and
Aftermarket sides of the business are familiar with Furrion’s
products and business lines, which should make for a smooth
transition as we integrate Furrion into the Lippert family
following the closing. Lippert’s goal is to inject more resources
into research, development, and innovation in order to bring more
great products to all of our markets. The runway for our two
companies is vast. We believe the estimated total addressable
market for Furrion products to be over $1.5 billion in North
America alone. Lastly, I want to thank all of the teams at Lippert
and Furrion who worked hard over the last several months to help
get this transaction to the point of signing a definitive
agreement.”
Regarding Lippert’s European and Australian business, Jason
Lippert commented, “Furrion will also fit well into Lippert’s
strategic global product road map with opportunities to broaden its
product offerings through existing Lippert relationships in these
new markets for Furrion. We believe that the European and
Australian markets are especially attractive. With Furrion’s
talented design and engineering teams, along with Lippert’s strong
European leadership teams, we intend to focus on capitalizing on
our significant global customer relationships to unlock
opportunities in the European and Australian Caravan Industry.”
“Furrion is extremely excited about this opportunity to join the
Lippert family,” said Darren Ho, Furrion CEO. “Over the life of the
company, everything Furrion has accomplished has been due to its
great team members and partners. As we move forward in taking
Furrion to the next level, we could not have found a more
complementary partner. Our history with Jason, Ryan, and their
teams, the culture at Lippert, and its proven track record makes
Lippert the perfect partner for us and together we hope to achieve
amazing results.”
About LCI Industries
LCI Industries, through its wholly-owned subsidiary, Lippert,
supplies, domestically and internationally, a broad array of highly
engineered components for the leading OEMs in the recreation and
transportation product markets, consisting primarily 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 engineered components to the related
aftermarkets of these industries, primarily by selling to retail
dealers, wholesale distributors, and service centers. Lippert'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; towing products; truck accessories;
electronic components; and other accessories. Additional
information about Lippert and its products can be found at
www.lippert.com.
Forward-Looking Statements
This press release contains certain "forward-looking statements"
with respect to the expected timing of the closing of the
transaction, Furrion's forecasted 2021 sales, expected growth in
sales following the transaction, the estimated addressable market,
and the expected impact of the proposed transaction on the
Company’s operations, markets, prospects, strategies, synergies and
efficiencies, 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 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, (i) conditions to
the closing of the transaction may not be satisfied; (ii) the
transaction may involve unexpected costs, liabilities or delays;
(iii) the Company’s business or stock price may suffer as a result
of uncertainty surrounding the transaction; (iv) the Company may be
unable to achieve expected synergies and operating efficiencies
from the transaction within the expected time frames or at all; (v)
the Company may be unable to successfully integrate Furrion’s
operations into its own, or such integration may be more difficult,
time consuming or costly than expected; (vi) following the
transaction, revenues may be lower than expected, and operating
costs, customer loss and business disruption (including, without
limitation, difficulties in maintaining relationships with
employees, customers, clients or suppliers) may be greater than
expected; (vii) the outcome of any legal proceedings related to the
transaction; (viii) the Company may be adversely affected by other
economic, business, and/or competitive factors; (ix) risks that the
pending transaction disrupts current plans and operations and the
potential difficulties in employee retention as a result of the
pending transaction; (x) other risks to consummation of the
transaction, including the risk that the transaction will not be
consummated within the expected time period or at all; and (xi) the
risks described from time to time in the Company’s reports filed
with the Securities and Exchange Commission under the heading “Risk
Factors,” including the Annual Report on Form 10-K for the fiscal
year ended December 31, 2020, and in the Company’s subsequent
filings with the Securities and Exchange Commission. Readers of
this press release are cautioned not to place undue reliance on
these forward-looking statements, since there can be no assurance
that these forward-looking statements will prove to be accurate.
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210804005653/en/
Brian M. Hall, CFO (574) 535-1125 LCII@lci1.com
LCI Industries (NYSE:LCII)
Historical Stock Chart
From Mar 2024 to Apr 2024
LCI Industries (NYSE:LCII)
Historical Stock Chart
From Apr 2023 to Apr 2024