ELKHART — LCI Industries today announced that its wholly-owned subsidiary, Lippert Components, has acquired the business and certain assets of Lexington.
Headquartered in Elkhart, Lexington manufactures seating solutions for the marine, RV, transportation, medical and office furniture industries. Sales of the acquired business for the 12 months ending in December are anticipated to be approximately $60 million.
“We are excited to add Lexington’s business and employees to our growing portfolio of furniture solutions for the marine, RV and adjacent industries,” said LCI’s President Scott Mereness. “LCI is the leading provider of furniture solutions for the RV towable industry, and with the addition of Lexington’s high quality products, design and manufacturing teams, and strong customer relationships, the leading supplier of pontoon furniture as well.”
The purchase price was $40 million, which was paid at closing from available cash and borrowings under the company’s $200 million line of credit. After funding this acquisition, LCI remains well-positioned to take advantage of other investment opportunities, the release noted.
Jeff Wysong, president of Lexington, will remain with LCI to lead the acquired business under the direction of Ryan Smith, vice president of Lippert Interiors.
“LCI is a great strategic fit for our company as well as our customers, and I am excited to be a part of their dynamic team,” said Wysong. “LCI has vast resources and great teams that will certainly help strengthen Lexington as we combine with LCI’s marine divisions to offer even better solutions to the marine market and its customers.”
“Our combined marine furniture team is talented and innovative, as well as experienced in managing growth,” said LCI CEO Jason Lippert. “Lexington is our largest acquisition in the past 20 years, and is representative of our strategy of quickly assembling a portfolio of companies and products that will help us become a major contributor to marine component designs and solutions.
“We expect to leverage our purchasing, sales, distribution and administrative capabilities to improve the profitability of this business, and we expect this acquisition to be immediately accretive to LCI’s earnings,” he said.
SOURCE: Lippert Components press release
This marks the 27th announced consolidation within the RV industry since Jan. 1, according to reports published by RV Daily Report. Some deals may have been announced during RV Daily Report’s end-of-year break in late 2016, but the news was published after the new year. Here is the current 2017 RV industry consolidation scorecard:
- Jan. 3 – Camping World acquires RV World of Georgia
- Jan. 10 – Camping World acquires RV-Max: Three locations in Texas
- Jan. 19 – Camping World buys Jamatt RV in Oklahoma
- Feb. 2 – Camping World buys Nelson’s RV in Idaho
- Feb. 16 – Camping World acquires McGeorge’s RV in Virginia
- March 3 – Willkins RV acquires Ballantyne RV in New York
- March 8 – Camping World acquires Safford RV in Virginia
- May 1 – Camping World acquires Gander Mountain, Overton’s
- May 9 – Apollo acquires CanaDream, Kratzmann Caravans and Clint’s Caravan Warehouse
- Jan. 2 – REV Group takes over Renegade RV
- Feb. 10 – Hymer acquires Explorer Group in England
- April 13 – REV Group acquires Midwest Automotive Designs
- May 5 – KV Private Equity acquires Northern Lite
- Jan. 2 – Covercraft acquires ADCO
- Feb. 2 – Dexter acquires Tie Down Engineering
- Feb. 9 – Lippert Components acquires Sessa Klein
- March 16 – Ultrafabrics merges with Daiichi Kasei Company
- March 20 – Patrick Industries acquires Medallion Plastics
- April 3 – Valterra acquires Diamond Group
- April 4 – The Eastern Company acquires Velvac
- April 12 – Power Products acquires Progressive Industries
- April 28 – Boomerang acquires United Roll Forming division
- May 11 – Dominion Services (RV Trader) acquired by West Street Capital Partners
- May 17 – Pressure Systems International acquires Truck System Technologies
- May 22 – Lippert Components acquires Lexington
- Jan. 20 – Zeman Homes buys Paradise Camping Resort in Grand Prairie, Ill., and Seasons in the Sun RV Resort in Mims, Fla.
- April 4 – Diversified Investment Companies acquires Hidden Creek Camping Resort in Marion, N.C.