Thu Nov 30, 2017
ELKHART, Ind. — Patrick Industries Inc. (NASDAQ: PATK) announced today it has completed the acquisition of LMI, Inc.—a leading designer, fabricator, and installer of specialty glass, mirror, bath and closet building products to residential housing and commercial high-rise builders, general contractors, retailers, and recreational vehicle ("RV") manufacturers in the U.S—and related companies. LMI is headquartered in Ontario, California and operates six manufacturing and distribution centers in California and Nevada and an additional manufacturing facility in China. According to a press release, Patrick Industries projects LMI's full-year 2017 revenues to be approximately $75 million. The total cash consideration paid for LMI was approximately $81 million and Patrick Industries expects the acquisition to be immediately accretive to 2017 net income per share.
LMI, whose well-established brands include LMI, Chaparral, CoxUSA, All Counties Glass, and Shower Enclosures America, serves leading residential and commercial builders, primarily in California and Nevada, and retailers, glass wholesalers, and RV manufacturers across the country. LMI's specialty building and RV products include multiple lines of shower enclosures, fabricated glass products, vanity and wall mirrors, wardrobe doors and hardware systems, and closet organizers and shelving.
"LMI's excellent reputation has been built upon years of providing quality products and services and industry leading technical and installation expertise to its customer base," says Cleveland, CEO of Patrick Industries. "LMI's offerings complement our existing industrial product portfolio and further increase our RV content per unit, while also allowing us to provide a full suite of bath and shower products to both new and existing customers. This acquisition is well-aligned with our strategic initiatives and capital allocation strategy, and represents an excellent opportunity to expand and diversify our presence in the industrial markets and enter new sales channels with large scale home builders, commercial contractors, and big box retail customers."
Andy Nemeth, Patrick Industries president, says, "LMI's long-standing builder and commercial relationships, geographic footprint in the western United States, glass and metal fabrication capabilities and expertise, and extensive portfolio of premium specialty bath and closet building products will enable us to further penetrate the residential housing and commercial markets. These western markets and certain other key regions of the country have experienced continued steady growth with strong industry tailwinds, and have a favorable outlook with continued pent-up demand for high-quality, affordable homes. Consistent with previous acquisitions, we will support LMI 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."
Larry Methvin, founder and president of LMI, says, "After more than 43 years in business, our exceptional team is excited to partner with the Patrick organization, which shares the same vision to supply innovative products and superior service to its customers."
Kent Snyder, principal at LMI, says, "The partnership with Patrick will enable us to expand our products and services into new geographic regions and further leverage LMI's proven business model and brands."
The acquisition of LMI included the acquisition of accounts receivable, inventory, prepaid expenses, and machinery and equipment, and was funded under the Company's existing credit facility. Patrick Industries will continue to operate LMI on a stand-alone basis under its brand names in its existing facilities.