Patrick Industries acquires Leisure Product Enterprises for $73.5m
US-based component products manufacturer Patrick Industries has acquired Leisure Product Enterprises (LPE) for $73.5m.
LPE is a holding company comprising three subsidiaries that serve the marine manufacturing sector, including Marine Concepts / Design Concepts (Marine Concepts), Florida Marine Tanks (FMT) and Marine Electrical Products (MEP).
Marine Concepts currently designs, engineers and manufactures CNC plugs, composite moulds and CNC moulds for fibreglass boat manufacturers, and currently operates out of two locations in Sarasota and Cape Coral in Florida, US.
The company was established in 1976 and also manufactures gelcoat and fibreglass parts and assemblies for both the marine and industrial markets.
FMT is based in Henderson, North Carolina, and is involved in the manufacturing, fabrication and assembling of aluminium fuel and holding tanks for the marine and industrial markets.
Lebanon, Missouri-based MEP manufactures custom wire harnesses, fibreglass and fibreglass reinforced thermoformed helm systems, dash panels, and instrument panels for the fibreglass, aluminium and pontoon boat segments.
MEP was initially formed in 1983 and also produces custom parts and assemblies for the industrial, commercial and off-road vehicle markets.
The newly concluded deal includes the acquisition of accounts receivable, inventory, prepaid expenses, machinery and equipment, and LPE’s two manufacturing facilities located in North Carolina.
Patrick Industries CEO Todd Cleveland said: “We look to continue to build on our marine platform, which after the LPE acquisition represents more than $125m in combined annualised revenues, complements our value proposition to the marine market, and will help drive synergy realisation.
“We believe the marine industry is well-positioned for continued growth throughout all boat segments, and this acquisition represents a growth opportunity in combination with Patrick's current marine portfolio of companies to further expand our presence as a key component supplier in the marine market.”
Patrick will continue to operate each of the three LPE subsidiaries on a stand-alone basis under their respective brand names in their existing facilities.