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 3, 2018
Author: RV News Staff
Patrick Industries Inc. announces completion of its acquisition of Arran Isle Inc. and its subsidiaries, including LaSalle Bristol.
LaSalle Bristol is a supplier of plumbing, flooring, tile, lighting, air handling and building products to the RV, manufactured housing (MH) and industrial markets. LaSalle Bristol is headquartered in Elkhart, Ind. and operates a nationwide network of 11 distribution centers, one manufacturing facility, and three combined manufacturing facilities and distribution centers, all of which are strategically situated across North America in close proximity to MH and RV manufacturing facilities.
The purchase price was approximately $54 million, including working capital of approximately $34 million. LaSalle Bristol's trailing 12-months revenue through October 2018 was approximately $230 million, with approximately 58 percent and 39 percent of the revenues, or $1,340 and $180 content per unit attributable to the MH and RV markets, respectively. Patrick expects the acquisition to be immediately accretive to net income per share.
Additionally, as LaSalle Bristol derives a majority of its revenues from distribution activities, Patrick expects there are significant annual operating synergy opportunities of approximately $4 million to be realized within the first 12 to 18 months post-closing.
"LaSalle Bristol's well-established brands, product lines and customer relationships have been built upon quality service and reliability for decades and highly complement our MH and RV product portfolio," Patrick Chairman and CEO Todd Cleveland says. "In addition, the acquisition of LaSalle Bristol provides us with an excellent opportunity to further leverage both companies' distribution capabilities and capacity and increase our content per unit within the MH and RV markets. This acquisition is aligned with our strategic initiatives and capital allocation strategy and we look forward to partnering with the LaSalle Bristol team to increase our value proposition to our customers."
"We are excited about the opportunity to increase our presence in the MH industry, which we believe has significant growth potential based on favorable fundamental industry characteristics, strong consumer confidence, increasing wages and jobs growth, and the lack of available affordable single-family housing options," Patrick President Andy Nemeth says. "Wholesale unit shipments for the MH industry, which have grown at a compound annual rate of approximately 11 percent over the last five years, still remain well below peak historical levels. Similar economic trends and attractive demographics continue to support strong demand in the RV market. We are looking forward to driving additional growth as a key component supplier through high-quality product solutions.
"In addition, LaSalle Bristol's large national footprint and supply chain expertise are highly complementary to our business model and will enable us to continue to meet our customer's demands, ensure just-in-time delivery and provide the highest levels of customer service," Nemeth says. "Consistent with previous acquisitions, we will support LaSalle Bristol 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."
The acquisition of LaSalle Bristol includes the acquisition of accounts receivable, inventory, prepaid expenses, real estate, and machinery and equipment, and was funded under the company's credit facility. Patrick will continue to operate LaSalle Bristol on a stand-alone basis under its brand names in its existing facilities.