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 Mar 20, 2017
ELKHART, Indiana - Patrick Industries, Inc. has announced that it has completed the acquisition of the business and certain assets of Medallion Plastics, Inc. and has expanded the size and extended the maturity date of its existing credit facility.
Medallion, located in Elkhart, Indiana, is a designer, engineer and manufacturer of custom thermoformed products and components which include dash and trim panels and fender skirts for the RV market and complete interior packages, bumper covers, hoods and trims for the automotive, specialty transportation and other industrial markets. Medallion's fiscal 2016 revenue was about $20 million. The total cash consideration paid for Medallion was about $10 million and the company expects the acquisition to be immediately accretive to net income per share.
"Medallion is recognized as a high quality designer and manufacturer of a wide array of innovative custom thermoformed plastic components and its flexible manufacturing process allows it to produce virtually any thermoformed component to meet its customers' needs," Patrick CEO Todd Cleveland says. "This acquisition represents a continued growth opportunity in combination with Patrick's current thermoforming portfolio of companies and will allow us to capitalize on product synergies in adjacent markets."
"Medallion's high quality product lines, vast product engineering capabilities, technical expertise and custom molds and tooling provide us with the opportunity to continue to drive our business model through expansion into other industrial markets, as well as further increase our RV content per unit," Patrick President Andy Nemeth says. "Consistent with previous acquisitions, we will support Medallion 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."
"After more than 40 years in business, our exceptional team is excited to partner with the Patrick organization whose strong focus on customer service coupled with our technology and manufacturing processes in the markets we serve will help further grow the Medallion brand," Medallion President Bob Toth says. "Patrick is a natural fit for our operation as we are poised to achieve the next level in our strategic growth plan."
The acquisition of Medallion included the acquisition of accounts receivable, inventory, prepaid expenses and machinery and equipment, and was funded under the company's existing credit facility. Patrick will continue to operate the business on a stand-alone basis under the Medallion brand name in its four existing facilities.
Credit Facility Expansion
Separately, the company entered into a third amendment to its credit agreement, dated March 17, to expand its credit facility to $450 million from $360 million. In addition, the maturity date for the credit facility was extended to March 17, 2022 from April 28, 2020.
"We are very appreciative of the continued support and confidence shown by our banking partners," Nemeth says. "The increase in our credit facility capacity, coupled with our recent equity offering, provides us with a strong financial foundation to continue to execute on our long-term strategic growth plan and capital allocation strategy and drive both organic and acquisition-related growth initiatives."