The Recreation Vehicle Industry Association commissioned an Economic Impact Study on the RV industry, released on June 7, 2016. The study found that the RV industry contributes about $49.7 billion in economic output or 0.28 percent of the Gross Domestic Product. Through its production and distribution linkages, the industry impacts firms in 426 of the 440 sectors of the United States economy.
Nationwide, the industry is responsible for 216,170 jobs, both directly and inderectly, creating an economic impact of $37.5 billion. The full study results, along with each individual state and congressional district's economic impact is available on the website by clicking here .
Mon Dec 5, 2016
ELKHART, Indiana - Patrick Industries, Inc. has announced that it has completed the acquisitions of the business and certain assets of Sigma Wire International, LLC, headquartered in Elkhart, Indiana; and KRA International, LLC, headquartered in Mishawaka, Indiana.
Sigma is a manufacturer of a wide range of PVC insulated wire and cable products primarily for the recreational vehicle and marine markets. KRA, which operates primarily in the RV and industrial markets, is a manufacturer of wire harnesses and associated assemblies for RVs, commercial vehicles, lawn care equipment, marine products, the defense industry and automotive aftermarket products.
The company projects the combined 2016 revenues of Sigma and KRA to be about $21 million. The total cash consideration paid for these two acquisitions was about $25 million. The company expects the acquisitions to be accretive to 2017 net income per share.
"The specialized design and engineering capabilities, manufacturing processes and state-of-the-art production equipment that Sigma and KRA possess, in conjunction with their industry leading reputations in the markets they serve, afford us the opportunity to further expand our presence and capabilities in the RV, marine, industrial, custom commercial vehicle and heavy duty vehicle markets," Patrick CEO Todd Cleveland says. "Both acquisitions represent an opportunity to increase our overall content per unit, complement our existing product portfolio at several of our operations and offer new and innovative product lines to our customers."
"There are tremendous growth and synergy opportunities with the acquisitions of Sigma and KRA, including the ability to leverage our incredibly talented sales force with Sigma's and KRA's engineering capabilities, while complementing our offerings of fully integrated marine helm systems within our existing fiberglass operations in the Midwest," Patrick President Andy Nemeth says. "Consistent with previous acquisitions, we will support Sigma and KRA with a financial and operational foundation that will allow each of them to expand on their existing brand value and capitalize on their core competencies while preserving the entrepreneurial spirit that has been so important to their success."
"We are excited to team up with the Patrick organization and bring our companies together to increase our value proposition to the markets we serve," Sigma and KRA President Hari Agarwal says. "We are planning to continue to drive the business model and partner with Patrick's existing business units to further expand our presence and grow our market share."
"The strength and dedication of Sigma and KRA's management team and their solid reputation in the marketplace will be an asset to our organization as we continue to execute on our strategic initiatives," Cleveland says. "In addition, the combination of the vertical integration and synergy opportunities is clearly aligned with our strategic growth plans as we continue to bring value to our customer base and to our shareholders."
The net purchase price for both businesses includes the acquisition of accounts receivable, inventory and machinery and equipment, and was funded under the company's credit facility. Sigma and KRA will continue to operate on a stand-alone basis under their respective brand names in their existing facilities.