Patrick Industries’ pursuit of a merger with Lippert Components may not have advanced, but CEO Andy Nemeth said the company’s acquisition activity continues.
In speaking to analysts after releasing first-quarter financial results, Nemeth said Patrick’s balance sheet and liquidity have put the company in a prime position to consider acquisitions.
“We are definitely active in the market right now,” Nemeth said, “cultivating deals, regardless of an LCI transaction or not. We feel really good about our continued position to be on offense in this market—to be able to take advantage of opportunities that are out there.”
Nemeth said the RV supplier’s merger and acquisitions (M&A) strategy could also affect its aftermarket strategy. He said expanding the company’s aftermarket reach includes M&A activity.
“As we continue to deepen our presence in the aftermarket, it is going to become more and more material as part of our vision and where we want to take that for the future,” Nemeth said of acquisitions. “We are still early in the game on aftermarket, but it is absolutely a strategy. We see not only potential for organic growth, but M&A potential out there, too, that we are focused on.”
Since acquiring Rec Pro in the fall of 2024 to reach the aftermarket, Patrick Industries has added over 500 parts to the Rec Pro website. Within the RV industry, Patrick President Jeff Rodino said the supplier has introduced six or seven brands’ offerings to Rec Pro.
Nemeth discussed other popular products in Patrick Industries’ RV portfolio. He said the company’s new composite roofing and upcoming flooring products are exciting to executives.
“We are making a lot of strides on the composite side,” he said. “We will see some gains in market share on the model year change. We feel really good about that.”
Reviews for the company’s new Digital Design Studio have also been strong. Nemeth said the technology is elevating how Patrick employees engage with the company’s OEM customers.
“Our studio team continues to host a number of demos showcasing the capabilities of the space,” he said, “and collaborating with product leaders to make the experience a part of their design and engineering process as we approach the next model year changeover.”
Nemeth said the company has hosted over 25 working sessions. The design studio helped the supplier eliminate dozens of prototypes.
“We believe the experience further embeds Patrick as an indispensable partner in the OEM product lifecycle,” he said, “and represents a meaningful, durable competitive advantage.”
Nemeth also previewed an upcoming entry-level power audio system. He said the product would help drive affordability in the segment.
