ELKHART, Ind., June 11, 2018 /PRNewswire/ -- Patrick
Industries, Inc. (NASDAQ: PATK) ("Patrick" or the "Company")
announced today that it has completed the acquisition of Marine
Accessories Corporation ("MAC") and has expanded the size of its
credit facility.
MAC is a manufacturer, distributor and aftermarket supplier of
custom tower and canvas products and other related accessories to
OEMs, dealers, retailers and distributors, as well as direct to
consumers within the marine market. MAC is headquartered in
Maryville, Tennessee and has eight
manufacturing and distribution facilities located primarily in
the U.S. MAC's trailing 12-months revenue through May 2018 was approximately $50 million and the Company expects the
acquisition to be immediately accretive to net income per
share.
"MAC's innovative marine products, and design, engineering,
manufacturing, and aftermarket expertise provide us with an
excellent opportunity to further penetrate the marine market and
leverage our existing capabilities within our marine platform,"
said Todd Cleveland, Chairman and
Chief Executive Officer of Patrick.
"We are excited to partner with the MAC team and its high
quality brand platform which is a seamless fit within our
entrepreneurial, brand-based model," said Andy Nemeth, President of Patrick. "MAC's
industry reputation for product quality, customized style and
innovation, and consistently reliable just-in-time delivery has
been instrumental in expanding its customer base within the
recreational boating market. This acquisition is aligned with
our strategic initiatives and capital allocation strategy and we
look forward to working with the MAC team to help further drive
value, growth and synergy realization. Consistent with previous
acquisitions, we will support MAC 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."
Rick Reyenger, Chief Executive
Officer of MAC, said, "We are very pleased to partner with Patrick
and strengthen our presence in the marine industry as we continue
to expand our footprint across multiple markets. The
combination of Patrick's strategic and capital resources with MAC's
energy, vision and foundation will help to further leverage our
opportunities to bring innovative solutions to our
customers."
The acquisition of MAC includes the acquisition of accounts
receivable, inventory, prepaid expenses, and machinery and
equipment, and was funded under the Company's newly expanded credit
facility. Patrick will continue to operate MAC on a
stand-alone basis under its brand names in its existing
facilities.
Credit Facility Expansion
On June 5, 2018, the Company
amended and restated its credit agreement to expand its senior
secured credit facility to $900
million (the "2018 Credit Facility") from $500 million. The 2018 Credit Facility is
comprised of an $800 million
revolving credit facility and a $100
million term loan with pricing, maturity, and material
provisions remaining unchanged.
"The increased credit facility positions us with capacity and a
strong financing foundation to continue to support the Company's
long-term strategic initiatives and disciplined capital allocation
strategy. We look forward to our continued partnership with our
bank group as we execute on our strategic plan, with the ultimate
goal of providing exceptional products and service to our customer
base and driving shareholder value," stated Mr. Nemeth.
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 over 110
manufacturing and distribution facilities located 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 and tops,
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.
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.