Six years after Lippert first signed a deal to distribute Furrion products in the U.S., and 20 months after that deal ended, Lippert has entered into a definitive agreement to acquire Furrion.
“We are very excited to welcome Furrion to the Lippert family,” said Jason Lippert, president and CEO of Lippert.
Lippert said Furrion was forecast to post $230 million in annual sales. Terms of the acquisition were not announced but the deal is expected to close in the third quarter.
Lippert said it is keeping and will continue to promote the Furrion brand after the acquisition.
“I believe the two companies can do great things together,” Lippert said, “and I look forward to seeing how we can innovate products to transform the industries we serve.”
Thompson Research Group analyst Kathryn Thompson said in a note the acquisition price would be about $145 million. She said Furrion has an existing distribution partnership in place that will terminate in six months. After that time, Lippert will take over distribution.
Furrion is headquartered in Hong Kong, China, and Elkhart, Indiana. The company supplies appliances, appliance accessories and audio-visual products to the RV industry.
Lippert said Furrion is best known for innovating new appliance products and introducing state-of-the-art camera technology. In addition to OEM supplies, about 30% of Furrion’s sales come in the aftermarket.
“Our sales and management teams on both the OEM and aftermarket sides of the business are familiar with Furrion’s products and business lines,” Lippert Group President Ryan Smith said, “which should make for a smooth transition as we integrate Furrion into the Lippert family following the closing.”
Lippert said Furrion’s electronics and appliances catalog complements Lippert’s OEM products, adding audio-visual components, observation camera systems, a full range of kitchen appliances and energy and power management systems.
“Furrion is extremely excited about this opportunity to join the Lippert family,” said company CEO Darren Ho, who took over as CEO in February when founder Aaron Fidler transitioned to company chairman. “Over the life of the company, everything Furrion has accomplished has been due to its great team members and partners. As we move forward in taking Furrion to the next level, we could not have found a more complementary partner. Our history with Jason, Ryan, and their teams, the culture at Lippert and its proven track record makes Lippert the perfect partner for us, and together we hope to achieve amazing results.”
Thompson said the turnover of executive team members at Furrion since the partnership ended in 2020 made the acquisition easier to close.
Furrion began supplying the RV industry in 2009 and posted sales of more than $35 million by 2014. The next year, then-CEO Fidler announced it would distribute Furrion’s products domestically through Lippert.
“As we have grown so quickly, we felt it was time to have a partner to assist with the sales and distribution,” Fidler said at the time. “LCI was the logical partner for us, and we look forward to a strong relationship for many years.”
The companies announced they would go their separate ways four years later in 2019. While saying the companies enjoyed a “very successful four-year partnership” they cited the potential for expanded tariffs in 2019 and beyond as leading to the dissolution effective Jan. 1, 2020.
“This transition, and the added ability for LCI and Furrion to pursue tailored strategies separately and more effectively given significant changes in global trade, will allow LCI to focus on strategic acquisitions and product development to meet the evolving needs of our customers,” Jason Lippert said at the time.
Fidler expressed optimism for Furrion’s future, saying the company’s team of more than 200 worked on a runway of more than 87 products to be launched in the 12 months after the dissolution announcement. Fidler also said Furrion planned significant expansion during the subsequent five years.
“We believe the estimated total addressable market for Furrion products to be over $1.5 billion in North America alone,” Smith said. “Lippert’s goal is to inject more resources into research, development and innovation in order to bring more great products to all of our markets. The runway for our two companies is vast.”
Lippert said it plans to use existing relationships to expand Furrion’s product distribution into Lippert’s sales channels, including RV, marine, Europe and adjacent industries, as well as those industries’ aftermarkets.