Patrick Industries, Inc. Completes Acquisition of Leisure Product Enterprises, LLC; Acquires Three Marine Manufacturing Companies

PR Newswire — May 1, 2017

ELKHART, Ind., May 1, 2017 /PRNewswire/ — Patrick Industries, Inc. (NASDAQ:
PATK) (“Patrick” or the “Company”) announced today that it has completed the
acquisition of Leisure Product Enterprises, LLC (“LPE”). LPE is a holding
company with three highly complementary manufacturing subsidiaries under its
umbrella: Marine Concepts/Design Concepts (“Marine Concepts”), Florida Marine
Tanks (“FMT”), and Marine Electrical Products (“MEP”). LPE primarily serves the
marine and industrial markets with combined fiscal 2016 revenues of
approximately $75 million. The aggregate purchase price for LPE was
approximately $73.5 million, and the Company expects the acquisition to be
immediately accretive to net income per share.

Marine Concepts has two locations in Sarasota, Florida and Cape Coral, Florida
and designs, engineers, and manufactures CNC plugs, composite molds (open and
closed), and CNC molds for fiberglass boat manufacturers. Marine Concepts also
produces gelcoat and fiberglass parts and assemblies for both the marine and
industrial markets. Marine Concepts opened in 1976 with the purpose of providing
all-in-one product design and development services, and is the industry leader,
producing tooling and molds for the hulls of the majority of U.S. fiberglass
boat manufacturers.

FMT is located in Henderson, North Carolina and manufactures, fabricates, and
assembles aluminum fuel and holding tanks for the marine and industrial markets.
FMT was started in 1974 and today provides an industry-leading platform of
design, engineering, and fabrication services for aluminum fuel, water, oil, and
holding tanks.

MEP is located in Lebanon, Missouri and manufactures custom wire harnesses,
fiberglass and fiberglass reinforced thermoformed helm systems, dash panels, and
instrument panels for the fiberglass, aluminum, and pontoon boat segments. MEP,
which was started in 1983, also produces custom parts and assemblies for the
industrial, commercial, and off-road vehicle markets.

“We look to continue to build on our marine platform, which after the LPE
acquisition represents more than $125 million in combined annualized revenues,
complements our value proposition to the marine market, and will help drive
synergy realization,” said Todd Cleveland, Chief Executive Officer of Patrick.
“We believe the marine industry is well-positioned for continued growth
throughout all boat segments and this acquisition represents a growth
opportunity in combination with Patrick’s current marine portfolio of companies
to further expand our presence as a key component supplier in the marine
market.”

“We are extremely excited to partner with the incredibly dedicated, innovative
and creative LPE team, which has a tremendous reputation in the industry for
design and engineering services and delivering high quality, innovative products
to the marine industry with a customer first approach,” said Andy Nemeth,
President of Patrick. “This partnership, coupled with our other distinct marine
brands, provides us with an opportunity to drive a tremendous value proposition
in the marine space as a premier brand supplier that can bring a growing
complement of design, engineering, fabrication and manufacturing products and
services, with the ultimate goal of providing turn-key solutions to the boat
manufacturers. We will support these three companies with a financial and
operational foundation that will allow each to capitalize on their core
competencies while preserving the entrepreneurial spirit that has been so
important to their success.”

J. Pearson, Chairman of LPE, said, “The team at Marine Concepts, FMT and MEP is
excited to partner with the Patrick organization, which shares our enthusiasm,
energy, and vision of continuing to design, engineer, and manufacture high
quality, innovative products for the marine market. Patrick is a great long-term
fit for our team and high quality brands, and we are planning to continue to
drive the business model and partner with Patrick’s business units currently
servicing the marine market to increase our presence and market share.”

The acquisition of LPE included the acquisition of accounts receivable,
inventory, prepaid expenses, machinery and equipment, and the two manufacturing
facilities located in North Carolina, and was funded under the Company’s
existing credit facility. The Company expects to incur one-time
transaction-specific pretax charges of $0.3 million or $0.01 per diluted share
after tax in the second quarter of 2017, and will also incur purchase accounting
expenses and charges related to the acquisition. Patrick will continue to
operate each of the businesses on a stand-alone basis under their respective
brand names in their existing facilities.

Patrick Industries, Inc.

Patrick Industries, Inc. is a major manufacturer of component products and
distributor of building products serving the recreational vehicle, manufactured
housing, kitchen cabinet, marine, office and household furniture, fixtures and
commercial furnishings, and other industrial markets and operates coast-to-coast
through locations in 19 states. 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, thermoformed
shower surrounds, fiberglass and plastic helm systems and component products,
wiring and wiring 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.
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. These forward-looking statements involve a number
of risks and uncertainties that could cause actual results to differ materially
from either historical or anticipated results depending on a variety of factors.
Potential factors that could impact results include: the impact of any economic
downturns especially in the residential housing market, a decline in consumer
confidence levels, pricing pressures due to competition, costs and availability
of raw materials, the imposition of restrictions and taxes on imports of raw
materials and components used in our products, information technology
performance and security, the availability of commercial credit, the
availability of retail and wholesale financing for residential and manufactured
homes, the availability and costs of labor, inventory levels of retailers and
manufacturers, the financial condition of our customers, retention and
concentration of significant customers, the ability to generate cash flow or
obtain financing to fund growth, future growth rates in the Company’s core
businesses, the seasonality and cyclicality in the industries to which our
products are sold, realization and impact of efficiency improvements and cost
reductions, the successful integration of acquisitions and other growth
initiatives, increases in interest rates and oil and gasoline prices, adverse
weather conditions impacting retail sales, our ability to remain in compliance
with our credit agreement covenants, and general economic, market and political
conditions. In addition, national and regional economic conditions may affect
the retail sale of recreational vehicles and residential and manufactured
housing. The Company does not undertake to update forward-looking statements,
except as required by law. Further information regarding these and other risks,
uncertainties and factors is 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.

To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/patrick-industries-inc-completes-acquisition-of-leisure-product-enterprises-llc-acquires-three-marine-manufacturing-companies-300448622.html

SOURCE Patrick Industries, Inc.

Subject Codes: PC/t.170501083955564, PT/lang.en, PC/ticker, IN/CST,
SU/TNM, RE/Indiana, PC/priority.r, PC/category.f,
PC/DataFeat_indpr, PC/port_32, PC/class.1239,
PC/WAVO_….b., PC/APT_….b, PC/trade_b, PC/wavo5_b,
PC/class.1030, PC/WAVO_l….., PC/APT_l…., PC/state_l,
PC/wavo1_l, PC/Billing_INI, PC/Billing_RWB,
PC/Billing_TNW, PC/1stAcc_677219, PC/bureau_DE,
PC/port_01, PC/port_96, PC/port_31, PC/port_19,
PC/port_91, PC/contact, PC/website, PC/id_DE76495

Company Codes: NASDAQ-NMS:PATK

Leave a Reply


Fatal error: Call to undefined function show_subscription_checkbox() in /home3/steer/public_html/indianapressreleases.com/wp-content/themes/comfy/comments.php on line 95